01:32 PM EDT, 09/12/2024 (MT Newswires) -- (Updates with the latest stock movement in the headline and first paragraph.)

Navient ( NAVI ) shares rose nearly 6% in recent Thursday trading after reaching a $120 million settlement with the Consumer Financial Protection Bureau 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.

Price: 15.50, Change: +0.84, Percent Change: +5.73