Navient jumps after settling with US CFPB
** Shares of student loan servicer Navient NAVI.O jump as much as 6.5%, last up 5.7% at $15.50
** U.S. Consumer Financial Protection Bureau says it has banned NAVI from servicing federal student loans and orders it to pay $120 mln for years of student lending failures
** Brokerage Jefferies says the move will have minimum impact on NAVI as it had already reserved $105 mln of the charge as of Q2 2024
** Adds that the move could be a net positive for NAVI, as it largely closes out the issue and aligns with NAVI's ongoing strategy
** NAVI no longer services or purchases federal student loans, having transferred its contract to service government loans to a third party in 2021; this July, co began outsourcing the servicing of federally subsidized private loans
** This is one less legal overhang for NAVI, and we believe investors will appreciate the news - Jefferies
** As of last close, NAVI shares down 21.3% YTD
Reporting by Arasu Kannagi Basil in Bengaluru
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