Tagged: Sallie Mae
Debi Teter Sallie Mae is sending out nearly 80,000 checks to service members and veterans who took out student loans. According to a statement from Sen. Richard Blumenthal, D-Conn, $60 million in refunds are part of a settlement over inflated interest rates. The settlement came after the federal government filed suit against Navient Corp., formerly part of Sallie Mae, for violating the Servicemembers Civil Relief Act, which caps student loan interest rates for servicemembers at 6 percent. The lawsuit claimed that violations went back to 2005. Compensation will range from $10 to more than $100,000, with the average check being about $771. The size of the check depends on how long and by how much the interest rate exceeded 6 percent. The settlement includes Navient’s full range of student loans, including private loans, direct Department of Education loans, and loans that originated under the Federal Family Education Loan Program. Navient also agreed to request the three major credit bureaus delete negative credit history entries connected to the overcharges. If you are wondering about your eligibility for compensation, call (855) 382-6421.