Navient Borrowers Begin Receiving Payments from Consumer Watchdog Case

Payments come over a year after Trump administration put CFPB enforcement actions on hold.

Published on Feb. 20, 2026

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Borrowers allegedly harmed by the educational loan finance company Navient are beginning to receive payments from a $100 million compensation fund created by the U.S. Consumer Financial Protection Bureau. The payments come more than a year after the Trump administration effectively put the CFPB on ice, causing concerns that hundreds of millions in payments stemming from enforcement actions under the prior administration were in jeopardy.

Why it matters

The Navient case highlights the ongoing challenges facing student loan borrowers and the role of federal regulators in holding loan servicers accountable. The delayed payments also reflect the broader political battles over the CFPB's enforcement powers during the Trump era.

The details

In 2024, Navient accepted a ban from servicing federal student loans and agreed to pay $120 million, including $100 million in compensation, to resolve CFPB allegations it had harmed millions of borrowers by steering them into delaying repayments even when they qualified for affordable repayment plans. The company said at the time it disagreed with the allegations. According to the CFPB website, a third-party consultancy began issuing victim compensation payments on February 13.

  • On February 13, 2026, the CFPB began issuing victim compensation payments.
  • In 2024, Navient agreed to the $120 million settlement with the CFPB.

The players

Navient

An educational loan finance company that was accused of harming millions of borrowers by the U.S. Consumer Financial Protection Bureau.

U.S. Consumer Financial Protection Bureau (CFPB)

The top U.S. consumer financial watchdog that secured the $120 million settlement with Navient and is overseeing the distribution of compensation payments to affected borrowers.

President Donald Trump

The former U.S. president whose administration effectively put the CFPB on ice, causing concerns about delayed payments to borrowers.

Mike Pierce

A former CFPB official and head of the advocacy organization Protect Borrowers, who criticized the Trump administration's actions for delaying payouts to student loan borrowers.

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What they’re saying

“The administration's actions had delayed payouts for more than a year, while giving the industry a 'free pass' despite mounting student borrower defaults.”

— Mike Pierce, Former CFPB official and head of Protect Borrowers (Reuters)

What’s next

The CFPB will continue to oversee the distribution of the remaining compensation payments to affected Navient borrowers in the coming months.

The takeaway

This case underscores the ongoing challenges facing student loan borrowers and the importance of strong federal oversight and enforcement to hold loan servicers accountable. The delayed payments also highlight the political battles that can impact the CFPB's ability to provide relief to consumers.