Sallie Mae and Navient, two loan servicing businesses have agreed to pay $97 million to settle federal charges they imposed excessive fees for student loans to members of the military. This violated federal law which places a cap on loan interest rates at 6% for military members. The government charged that excessive rates were charged to over 60,000 service members.
Uncle Sam also said the companies maximized late fees and didn’t disclose how the consumers could avoid them. Navient collects payments on nearly $300 billion in student loans.
Jeffrey Newman represents whistleblowers