Sallie Mae Accused of Overcharging Military Personnel on student Loans
The answer is “yes”
Servicemembers Civil Relief Act caps interest on loans to military personnel at 6 percent, along with providing protections against default judgments and garnishments, and a person briefed on the matter said compliance with the 6 percent limit would be a key part of the F.D.I.C. action. Under the law, if a person borrows money at a higher rate and then enters the military and requests a lower rate, the lender must reduce the rate to 6 percent, and forgive any interest above that level.
Federal regulators plan to accuse Sallie Mae, the giant student lending corporation, of charging military personnel excessive interest on student loans, and the government is looking into similar allegations against other lenders.
Sallie Mae revealed the pending action against it this week in its quarterly earnings report, stating that the Federal Deposit Insurance Corporation warned in July that it planned to take “new formal enforcement action” against the lender.
Click here for the rest of the article…
Link to Sallie Mae & the Military…
We have several videos on our web site. Below are is one that might be of interest:
- “Meet Ms. Drain and Suggestions on How to Hire an Attorney”
[av_video src=’https://www.youtube.com/watch?v=LN5WSvPGxJQ&feature=youtu.be’ format=’16-9′ width=’16’ height=’9′ av_uid=’av-plzkf’]
MUSINGS FROM DIANE:

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
In Case You Missed It
Published On: February 23, 2025
The National Consumer Law Center (NCLC) is warning that the Trump Administration's actions to shut down the Consumer Financial Protection Bureau (CFPB) will devastate working families, honest businesses, and the economy. "Millionaires and billionaires are [...]
Published On: February 23, 2025
U.S. credit card debt reached a record $1.17 trillion In the third quarter of 2024, U.S. credit card debt reached a record $1.17 trillion, a significant increase from $770 billion in early 2021. This surge [...]
Published On: February 17, 2025
Reprint from the IRS website: Presidents Day weekend is peak time for IRS phone traffic. Skip the wait by visiting IRS.gov. IR-2025-22, Feb. 12, 2025 WASHINGTON — With the 2025 filing season underway and the [...]
Published On: February 11, 2025
Some time ago I published an article about the Arizona Supreme Court's terrible decision that those who live in RVs, motor homes, trailers, or houseboats—basically anything that is not a traditional stick or manufactured home—can [...]