CFPB Seeks $5M in Penalties Against Student Loan Servicers

On May 6, the CFPB filed a complaint and two proposed stipulated final judgments to require National Collegiate Student Loan Trusts and Pennsylvania Higher Education Assistance Agency to pay more than $5 million for student loan servicing failures. This suit is separate from the case heard in the U.S. Third Circuit Court of Appeals, which is currently in settlement discussions. If entered by the court, the stipulated final judgments will require the Trusts and PHEAA to pay $400,000 and $1.75 million in civil money penalties, respectively, and pay nearly $3 million in redress to affected consumers. The orders also would require significant non-monetary and injunctive relief.

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