If you’ve been crying about never-ending student loan debt, hefty late charges and insulting interest rates, it may be time to put the Kleenex away.
Sallie Mae, the largest student loan lender and the federal government have struck a deal to resolve allegations of cheating student loan borrowers who were charged pricey late fees, according to Smart Penny. And it gets better, in addition to the government, the Federal Deposit Insurance Corp. and the Consumer Financial Protection Bureau are investigating whether the bank violated federal consumer protection laws that prohibit discriminatory lending. The investigation will also include whether Sallie Mae wrongfully processed borrowers’ monthly payments.
According to the Huffington Post, Sallie Mae and Navient, it’s former loan servicing unit, agreed to refund borrowers who were unfairly charged late fees $72 million. They’d also pay the FDIC a $6.6 million civil penalty.