Navient Borrowers Receive Payments from Consumer Watchdog Case

Compensation fund created by CFPB begins issuing payments to allegedly harmed borrowers.

Published on Feb. 22, 2026

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Borrowers who were allegedly harmed by student loan company Navient have started receiving payments from a $100 million compensation fund created by the U.S. Consumer Financial Protection Bureau (CFPB). The payments come more than a year after the Trump administration's actions delayed the payouts, according to a former CFPB official.

Why it matters

The CFPB case against Navient accused the company of steering borrowers into delaying repayments even when they qualified for more affordable plans, causing them to pay more in interest. The compensation fund is meant to provide relief to affected borrowers, though the delay in payments has drawn criticism from consumer advocates.

The details

In 2024, Navient agreed to pay $120 million, including $100 million in compensation, to resolve CFPB allegations that it had harmed millions of borrowers. A third-party consultancy began issuing the victim compensation payments on February 13, 2026.

  • In 2024, Navient accepted a ban from servicing federal student loans and agreed to the CFPB settlement.
  • On February 13, 2026, a third-party consultancy began issuing the victim compensation payments.

The players

U.S. Consumer Financial Protection Bureau (CFPB)

The top U.S. consumer financial watchdog agency that brought the enforcement action against Navient and created the $100 million compensation fund.

Navient

The educational loan finance company that was accused of harming millions of borrowers by steering them into delaying repayments even when they qualified for more affordable plans.

Mike Pierce

A former CFPB official and head of the advocacy organization Protect Borrowers, who criticized the Trump administration's actions for delaying the payouts to 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 has not indicated if there will be any further enforcement actions or compensation funds related to this case against Navient.

The takeaway

This case highlights the ongoing challenges and disputes around student loan servicing practices, as well as the role of federal consumer protection agencies in providing relief to allegedly harmed borrowers.