Page 3 - aruba-today-20240913

A3
U.S. NEWS Friday 13 September 2024
U.S. consumer watchdog moves to permanently ban Navient from

federal student loan servicing

By WYATTE G.-PHILIPS acy loans from the Federal
AP Business Writer Family Education Loan Pro-
NEW YORK (AP) — The U.S. gram to another servicer,
Consumer Finance Protec- MOHELA, starting July 1.
tion Bureau has filed a pro- Beyond the ban of servic-
posed order to permanent- ing direct federal loans,
ly ban Navient from directly the CPFB’s order would
servicing federal student also bar Navient from ac-
loans, which the agency quiring most of those FFEL
says will put an end “years loans, which are federally-
of abuse.” backed private loans dis-
Under terms of the Thurs- tributed through a program
day order, which Navient that ended in 2010. Bor-
agreed to without admit- rowers may still have these
ting any wrongdoing, the kinds of loans if they at-
Virginia-based financial tended school before then.
services company would At the time the CFPB filed
also have to pay a $20 mil- its lawsuit against Navient
lion penalty and provide back in 2017, the agency
another $100 million in relief said that Navient was ser-
to impacted borrowers. vicing student loans of
“Today, we are closing the more than 12 million bor-
book on Navient,” CFPB The headquarters of student loan debt collector Navient Corporation is seen in Wilmington, Del., rowers, including more than
Director Rohit Chopra said April 2, 2014. 6 million accounts under its
in prepared remarks Thurs- Associated Press contract with the Educa-
day, stating that the com- cost repayment plans, or day order, which should vicers in the U.S. But that’s tion Department. In total,
pany harmed millions of long-term forbearance, be finalized when entered changed. The company the CFPB added, Navient
borrowers as “one of the and failing to properly pro- by the court, Navient said maintains that it is no lon- serviced over $300 billion in
worst offenders in the stu- cess payments. the settlement agreement ger a servicer or purchaser federal and private student
dent loan servicing indus- In the years that followed, reached with the agency of federal student loans. loans.
try.” states also began to exam- “puts these decade-old is- Navient’s contract with the “Borrowers don’t get to se-
Chopra said the CFPB be- ine such allegations of for- sues behind us.” “While we U.S. Education Department lect who services their stu-
gan investigating Navient, bearance steering lead- do not agree with the CF- to service direct loans end- dent loan, so more than a
which split off from con- ing to debt cancelations PB’s allegations, this reso- ed in 2021. The company quarter of all student loan
sumer banking corporation for many borrowers across lution is consistent with our says this was transferred borrowers had no choice
Sallie Mae in 2014, nearly a the country. In 2022, for ex- go-forward activities and is to a third party, Maximus, but to rely on Navient as
decade ago. The agency ample, Navient agreed to an important positive mile- which currently services their servicer,” Chopra said
later sued Navient, accus- settle claims with 39 state stone in our transformation these loans under the in his Thursday remarks —
ing the company of preda- attorneys general for $1.85 of the company,” the com- name “Aidvantage.” And later adding that the pro-
tory lending practices such billion. pany added. earlier this year, Navient posed settlement “marks a
as steering those struggling In a statement following the Navient was once one of reached an agreement to significant step” for future
with their debts into higher- filing of the CFPB’s Thurs- the largest student loan ser- outsource servicing of leg- protections. q

Next year’s Jan. 6 election certification will get extra security to

prevent another riot

By REBECCA SANTANA Homeland Security Secre- pecially when it comes to scaled walls, shattered in the halls of Congress.
Associated Press tary Alejandro Mayorkas pulling in resources across windows, beat police and About 140 police officers
WASHINGTON (AP) — In an made the designation fol- the federal government. hunted down lawmakers were injured that day.q
effort to prevent another lowing a request from the “National Special Secu-
riot like the one on Jan. 6, mayor of Washington, D.C. rity Events are events of
2021, the Homeland Se- The move means these the highest national sig-
curity secretary has desig- are particularly high-profile nificance,” Eric Ranaghan,
nated the congressional events that might be tar- the special agent in charge
count and certification of gets for terrorists or crimi- of the U.S. Secret Service’s
the presidential election as nals. Dignitary Protective Divi-
a national special security The Secret Service is in sion, said in a statement.
event overseen by the Se- charge of running security The agency and its part-
cret Service. for such events in a plan- ners “are committed to de-
Both political parties’ na- ning process that kicks off veloping and implement-
tional conventions, the many months in advance. ing a comprehensive and
presidential inauguration A steering committee for integrated security plan to
and the U.N. General As- the Jan. 6 certification has ensure the safety and se-
sembly already have this been formed and will be- curity of this event and its
designation, but it’s the first gin meeting in the coming participants,” he said.
time the Jan. 6 vote count weeks, the Secret Service Rioters seeking to overturn Insurrectionists loyal to President Donald Trump try to break
and certification have re- said. the results of the 2020 elec- through a police barrier, Wednesday, Jan. 6, 2021, at the Capitol
in Washington.
ceived it. The goal is to improve plan- tion descended on Capitol Associated Press
The Secret Service said ning and coordination, es- Hill on Jan. 6, 2021. They