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: May 25, 2026
Debt Decisions Have Consequences: Slow Down Before You Act When money is tight, fear can take over. You feel as if a debt storm has caught you. People may feel pressured to make fast decisions: [...]
Published On: May 25, 2026
When the Economy Feels Unstable: How to Protect Yourself From Debt in an Unstable Economy Many families feel squeezed right now. Prices remain high, borrowing money is expensive, and many people are using credit cards [...]
Published On: May 2, 2026
Perils of Filing Bankruptcy by an Undocumented Person or Non-Citizen This post is based on an earlier post on by Richard J. Parker, (reprinted with permission - December 2017). Updated by Diane Drain: May 2026 [...]
Published On: April 11, 2026
Reaffirming Arizona Home Loan During Bankruptcy If you file bankruptcy in Arizona, you may be asked whether you want to reaffirm your home loan. That is an important decision because reaffirming means the debt will [...]
