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
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