A student loan servicer actually has to give refunds!
The student loan servicer formerly part of Sallie Mae, Navient Corp., was accused of charging active duty U.S. military members interest on their federal and private student loans. Under the Service Members Civil Relief Act (SCRA), there is a cap of 6% on student loans taken out by members of the armed forces. However, Navient Corp. charged these military members higher rates.
Navient claims that the service members who took out student loans didn’t fill out the SCRA documentation correctly nor did they provide the proper proof that they were active duty. To avoid this, the Department of Education is working with the Department of Defense to identify active duty military personnel who qualify for lower interest rates under the SCRA rather than leaving it up to them to apply.
After a case between the Department of Justice and Navient Corp., they reached a settlement in May 2014. The settlement involves Navient Corp. paying 78,000 military members student loan refunds totaling $60 million. The refund checks are between $10 and $100,000 but average $771. They will supposedly be mailed on June 12, 2015.
Navient Corp. also has to pay a $55,000 civil penalty charge and request that Experian, Equifax, and TransUnion remove negative trade lines on military members? credit reports that happened due to the interest rate overcharges.
If you are a service member with student loans, you should call (855) 382-6421 to see if you are eligibility for monetary relief.