WASHINGTON May 13 Student loan provider Sallie Mae will refund around $60 million to members of the military whose interest rates it failed to cap at 6 percent, in violation of federal law, the U.S. Justice Department announced Tuesday.
The Federal Deposit Insurance Corp announced a parallel settlement with the lender that includes an additional $30 million to harmed borrowers.
A spin-off of Sallie Mae, Navient Corp., told shareholders last week that it had set aside $173 million to settle the two investigations.
The settlement with the Justice Department will compensate an estimated 60,000 service members who were charged more than the legally mandated 6 percent interest rate put in place to keep education affordable for military personnel.
(Reporting By Julia Edwards and Aruna Viswanatha; Editing by Chizu Nomiyama)