The proposed order would also prohibit the firm from directly servicing or acquiring most loans under the Federal Family Education Loan Program.

CFPB also fined NAVI $20 million as a penalty and $100 million to redress the borrowers who have been impacted by the actions.

"For years, Navient's top executives profited handsomely by exploiting students and taxpayers," said CFPB Director Rohit Chopra.

CFPB said the company pushed many student loan borrowers to take costly repayment options, and also "illegally deprived student borrowers of opportunities to enroll in more affordable income-driven repayment plans and forced them to pay much more than they should have."