Sallie Mae Cheated Active-Duty Servicemembers on Federal Loans

Federal investigators found evidence that Sallie Mae violated the Servicemembers Civil Relief Act in servicing some federal student loans at least two months before the Department of Education decided to renew its contract with the company, reported The Huffington Post.

Investigators concluded as early as August that Salle Mae had violated the law by failing to allow active-duty soldiers to use critical protections for their loans. The Education Department told the company in October that it would renew its contract.

It is unclear whether the investigators' findings reached the appropriate Education Department officials before they decided to inform Sallie Mae of their intent to renew the contract, HuffPo reported.

Sallie Mae has been criticized by federal lawmakers, student advocates, state colleges and teachers' unions for its servicing of education loans. Those groups have also criticized the Education Department for its lack of supervision of Salle Mae.

 

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The Huffington Post

http://www.huffingtonpost.com/2014/04/28/sallie-mae-servicemembers_n_5229312.html