Education Justice Victory: CFPB Bans Navient, $7.5B Borrower Defense Relief for 264K Students

Education justice achieved significant victories recently-2025 through aggressive enforcement against predatory student lending, with CFPB banning Navient from federal loan servicing and ordering $120 million penalty for systematic borrower harm.

Navient illegally steered borrowers into costly repayment options while denying access to affordable income-driven plans, forcing $20 million civil penalty plus $100 million redress for harmed borrowers.

The Sweet v. Cardona class action delivered $7.5 billion in relief to approximately 264,000 borrowers with pending borrower defense applications, representing massive victory against predatory for-profit college schemes.

Corinthian Colleges victims received $480+ million in loan forgiveness after CFPB sued the for-profit chain for illegal predatory lending targeting tens of thousands with false job prospects and career services claims.

Performance SLC customers received $10.9 million in relief for illegal upfront fees charged from 2015-2022, while National Collegiate Student Loan Trusts paid $2.25 million for filing defective debt collection lawsuits they couldn't prove.

However, enforcement faced setbacks: CFPB withdrew lawsuit against Pennsylvania Higher Education Assistance Agency (PHEAA) in February 2025 despite illegal collection of discharged bankruptcy debts, with advocates calling it "capture and demolition of federal consumer watchdog."

Colony Ridge case shows ongoing predatory practices: CFPB and DOJ sued Texas developer targeting Hispanic borrowers with flood-prone land lacking utilities, using unaffordable loans with 25% foreclosure rates.

CFPB referred 18 fair lending discrimination matters to DOJ in 2023, including race/national origin mortgage discrimination, public assistance discrimination, and predatory targeting of communities of color.