The Department of Justice has announced that it will begin issuing refunds to veterans who have been overcharged for their student loans, in an amount totaling $60 million.
Nearly 78,000 service members were denied a benefit under the Servicemembers Civil Relief Act (SCRA), which entitles them to an interest rate cap of 6 percent for certain loans incurred before their military service began.
The payments are required by a settlement that DOJ reached last year with Navient Corp., the student loan servicer formerly part of Sallie Mae. The lawsuit alleged that Navient has been failing to provide the SCRA benefit to members of the military dating as far back as 2005.
Service members will begin receiving refunds on June 12, 2015. According to the Department of Justice, refunds will range from $10 to over $100,000, and the average veteran will receive about $771 in compensation. The amount refunded will depend on how long each individual’s interest rate exceeded 6 percent and by how much, as well as the type of military documentation provided by the service member.
