09:54 AM EDT, 09/12/2024 (MT Newswires) -- Navient ( NAVI ) was ordered to pay $120 million by the Consumer Financial Protection Bureau on Thursday for what the regulator said was "wide-ranging student lending failures."

The agency said that among the company's alleged illegal actions were steering many student loan borrowers into expensive repayment options and depriving them of opportunities to enroll in cheaper income-driven repayment plans.

Under the terms of the order, Navient ( NAVI ) would have to pay a $20 million penalty and provide $100 million in redress for harmed borrowers, the CFPB said.

The regulator added that if entered by the court, its order bans the company from most federal student loan activities.

In a separate statement Thursday, Navient ( NAVI ) said that even though it disagrees with the agency's allegations, the resolution of the matter "is an important positive milestone" in the company's transformation.

The company said it no longer services or purchases federal student loans.

Navient ( NAVI ) shares were 2% higher in recent trading.

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