Sallie Mae, the largest servicer of federal and private students, was ordered to pay $96.6 million in restitution and penalties for violating the legal rights of U.S. service members, according to the Justice Department.
The payout settles claims Sallie Mae violated the Servicemembers Civil Relif Act by overcharging enlisted borrowers. Both DOJ and the FDIC reached settlements with Sallie Mae.
The violations were first revealed in a 2012 CFPB report that found service members were not provided clear and accurate information about their loan repayment options by student loan servicers.
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