Sallie Mae agrees to $97M settlement over servicemembers’ student loans interest rates

Politico ^ | May 14, 2014 | By ALLIE GRASGREEN and NIRVI SHAH

[Brad from Tennessee]

Student loan servicer Sallie Mae and formerly affiliated companies have agreed to pay a total of $97 million to settle claims that it charged members of the military too much interest on their loans — and the Education Department will review whether additional federal action, including termination of its contract with Sallie Mae, is necessary.

The Justice and Education departments on Tuesday announced a $60 million settlement with Sallie Mae and related companies, and the Federal Deposit Insurance Corp. announced a separate $37 million settlement with Sallie Mae Bank and Navient Solutions, Inc., over deceptive lending practices and violations of the Servicemembers Civil Relief Act.

The Justice Department estimates that about 60,000 servicemembers will split the $60 million. The agency’s complaint alleges that Sallie Mae violated the law widely and as far back as 2005 by failing to provide members of the military the 6 percent interest rate cap they were entitled to. Until an April 30 split, Navient serviced loans for Sallie Mae. . .

[boycott]

I am sure the taxpayers will find a way to pick up the tab.

[YouGoTexasGirl]

It is no longer worthwhile to bring a wrong up. What you do is watch it happen for years and then get a class action suit so that attorney’s can make their high dough on the back of taxpayers. We have noticed this on EVERY level of taxpayer funded levels, including schools, counties, cities, states and national govt.

Without moral character we have dove into the abyss of smut and mire for some to have more benefits from taxpayer’s pockets. We are ALL in life together and until military realizes some of us who could not serve stayed here to pay and protect their loved ones and support their time serving, vs. owe them the rest of their lives, things will never change here in this former great land God gave us. Like SO MANY issues of delicate nature, groups have formed powerful lobbies so that their voice is heard loud and clear and become a protected class against any benefit cuts all the while breaking our country at its core with morals, ethics, religion and debt.

[boycott]

Lawyers (this includes our courts and politicians) have broken America. They’re the enabler of most that is wrong with our government.

[YouGoTexasGirl]

Exactly!

Oh, going through old papers today I found where I’d asked my congressman (R) what happens with the motorized wheelchairs once a person does not need them, say death. NO firm answer so I guess the estate gets them and can have the sale proceeds!