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The Huffington Post reports that the U.S. Department of Education is nearing a settlement with the lender Navient over allegations that this Sallie Mae spin-off violated laws in its student loan lending practices to veterans.

"The agreement likely would end the Education Department's much-delayed and heavily-criticized probe into whether the nation’s largest student loan specialist -- a major government contractor -- broke the law that caps interest rates and provides other special financial protections for active-duty members of the military," the website said.

"The Education Department’s investigation followed a May deal with the government in which Navient settled federal accusations that it had intentionally overcharged about 60,000 active-duty troops on federal and private student loans over nearly a decade. The company, which neither admitted nor denied wrongdoing, agreed to pay $60 million to troops as part of its settlement with the Federal Deposit Insurance Corp. and the Department of Justice."

"Despite the Justice Department’s detailed complaint, which followed a referral by the federal Consumer Financial Protection Bureau, Education Secretary Arne Duncan later announced a 'thorough' review to determine whether the company indeed overcharged troops."

 


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