(WASHINGTON) – Thousands of service members will be getting paid back by their student loan company this June. But this isn’t a paycheck, it’s more like a rebate.
That’s because tens of thousands of service members in school were overcharged on their student loan interest rates by Navient (the loan company that includes the former Sallie Mae).
By law, service members’ student loan rates are supposed to be capped at six percent. But Navient charged some of these students more. The company will pay the students back this June, according to a Justice Department settlement announcement on Thursday.
“This compensation will provide much deserved financial relief to the nearly 78,000 men and women who were forced to pay more for their student loans than is required under the Servicemembers Civil Relief Act,” Acting Associate Attorney General Stuart F. Delery said in a release.
Checks for the students, which will be mailed out in June, range from 10 bucks to over $100,000.
The department’s investigation of Navient came after service members complained about their student loan rates. The Department of Education is changing their system, adding a database that automatically identifies students who are are eligible for the lower interest rate, instead of requiring service members to apply for the benefit.
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