Navient Corp 8-K, filed Sep 12, 2024
Navient Corp (NAVI)
About this 8-K
Navient Corp filed this 8-K on September 12, 2024.
Items reported
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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Item 8.01. Other Events
On September 12, 2024, Navient Corporation (the “Company”) announced that it has entered into a stipulated final judgment and order (the “Order”) to resolve previously reported litigation with the Consumer Financial Protection Bureau concerning alleged violations of the Consumer Financial Protection Act of 2010, Fair Credit Reporting Act, and Fair Debt Collection Practices Act. Among other provisions, pursuant to the Order, the Company agreed to pay a monetary penalty of $20 million plus additional monetary relief and redress of $100 million to a population of borrowers who will be determined by the CFPB. The Company also agreed not to re-enter servicing of federal student loans and not to acquire any additional ownership interest in FFELP loans. The Company does not expect these restrictions to impact its business plans, the outsourcing of its student loan servicing operations or the achievement of its other strategic actions announced in January 2024. The Company also agreed to implement a compliance plan to ensure compliance with applicable laws and the terms of the Order.
As of June 30, 2024, the Company had recorded a contingency loss liability of $105 million related to this matter. For additional information regarding this matter and the loss contingency accruals established in connection therewith, see the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the Securities and Exchange Commission on July 24, 2024.
The Company issued a press release regarding the foregoing settlement, a copy of which is attached hereto as Exhibit 99.1 and incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
Exhibit Number |
| Description |
| Press Release of Navient Corporation, dated as of September 12, 2024. | |
104 |
| Cover Page Interactive Data File (embedded within the Inline XBRL document). |
2 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NAVIENT CORPORATION |
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| By: | /s/ Joe Fisher |
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| Name: | Joe Fisher |
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| Title: | Chief Financial Officer |
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Date: September 12, 2024
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EXHIBIT 99.1
NEWS RELEASE
For immediate release
Navient Resolves Legal Matters with Consumer Financial Protection Bureau
HERNDON, Va., Sept. 12, 2024—Navient (Nasdaq: NAVI) today released the following statement after reaching an agreement with the Consumer Financial Protection Bureau to resolve previously disclosed litigation and investigations:
This agreement puts these decade-old issues behind us. While we do not agree with the CFPB’s allegations, this resolution is consistent with our go-forward activities and is an important positive milestone in our transformation of the company.
Navient is no longer a servicer or purchaser of federal student loans. In 2021, with the approval of the Department of Education, Navient transferred its contract to service government student loans to a third party, and earlier this year, Navient reached an agreement to outsource student loan servicing of its legacy FFELP student loan portfolios, which began on July 1, 2024. Navient will oversee its third-party servicing provider to meet all operational terms of the agreement.
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About Navient
Navient (Nasdaq: NAVI) provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achieve success. Our customer-focused, data-driven services deliver exceptional results for clients in education, healthcare, and government. Learn more at navient.com.
Contact:
Media: Paul Hartwick, 302-283-4026, paul.hartwick@navient.com
Investors: Jen Earyes, 703-984-6801, jen.earyes@navient.com
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