Navient's Long-Awaited Reparations Begin

Money is finally moving to those wronged by Navient, but not without a long delay. The Consumer Financial Protection Bureau (CFPB) has started sending out payments to borrowers after a deal was struck in 2024. Navient, a major student loan servicer, agreed to pay $120 million, with $100 million going directly to borrowers. The CFPB claimed Navient had misled borrowers, pushing them into costly repayment plans instead of more affordable options. The payments come over a year after President Trump's administration put the CFPB on hold, causing concern among advocates who feared the money might never reach those affected. Mike Pierce, head of the advocacy group Protect Borrowers, criticized the delay, stating it gave the industry a free pass while borrowers struggled with defaults.Navient has maintained they did nothing wrong, but the CFPB insists the company's actions led to higher interest payments for millions. The CFPB's website confirms that a third-party company began issuing payments on February 13. Despite the progress, the delay has left many questioning the effectiveness of consumer protection efforts. The story raises questions about how well the system protects borrowers and how quickly justice is served. With student loan debt being a major issue, the case highlights the need for better oversight and faster action.