78,000 service members will get checks in June for excess interest they were charged on their student loans thanks to a Department of Justice settlement announced Thursday.
Those checks will be mailed June 12 and range from $10 to $100,000, depending on how long the interest rate exceeded six percent on their loans and by how much. The average check will be $771.
It's part of a DOJ settlement with Navient Corp., the student loan servicer formerly part of Sallie Mae. It was sparked by the first ever lawsuit filed against owners and servicers of student loans for violating the rights of service members eligible for benefits and protections under the Servicemembers Civil Relief Act (SCRA).
Navient must also request that all three major credit bureaus delete any negative credit history entries caused by the interest rate overcharges and improper default judgments.
Beginning June 12, service members with questions about their eligibility for monetary relief under the settlement should call (855) 382-6421. Other service members and their dependents who believe that their SCRA rights have been violated should contact an Armed Forces Legal Assistance office. To find the closest office,, consult the military legal assistance office locator at http://legalassistance.law.af.mil and click on the Legal Services Locator.