Nearly 78,000 members of the military who federal prosecutors said were overcharged on their student loans will begin to receive a total of $60 million in compensation next month, the Department of Justice announced Thursday.
Navient, the loan servicing company that was previously part of Sallie Mae, will fund the payments as part of a settlement reached last year to resolve charges that it charged excess interest on service members’ student loans.
The payments will range from $10 to $100,000, with the average check about $771, the Justice Department said.
Navient denied any wrongdoing as part of the settlement. The government’s allegations of overcharging applied to the company’s private loan portfolio as well as the federal loans for which it manages payments on behalf of the Education Department.
Earlier this week, a separate Education Department review of Navient and other government-contracted loan servicers said that the companies largely followed the law when it came to giving service members the special loan benefits to which they are entitled.
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