Justice Department reaches settlement with Sallie Mae

WASHINGTON (WIAT) — The United States Justice Department has reached a $60 million settlement with student loan giant Sallie Mae.

There are allegations that it improperly charged excessive interest rates to members of the military.

The government alleges the lender charged rates above 6 percent – the amount allowed under federal law.

“By requiring Sallie Mae to compensate its victims we are sending a clear message to all lenders and servicers who would deprive our service members of the basic benefits and protections to which they are entitled,” said U.S. Attorney General Eric Holder.

Under the agreement, the lender will pay compensation.

As many as 60,000 service members could be eligible.

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