Thousands of Service Members will Receive Checks This Month
Posted by Vets National Advocates on June 04, 2015 in Veterans News
Justice has finally been reached for thousands of service men and women who were charged excess interest on student loan debt by Navient Solutions, a student loan services company.
According to the Justice Department, 77,795 members of the military will begin receiving checks in the mail this month for up to $100,000 as reimbursement for the overcharges.
At Vets National Advocates we believe that members of the military deserve respect and support for their decision to serve our country, not be penalized for it. If you are having trouble getting the support you need from the government for military benefits, veterans advocates can help. Call 877-777-4021 for a free case review.
In May 2014 the Department of Justice filed a lawsuit against Navient for violating the Servicemembers Civil Relief Act (SCRA) by charging members of the military more than the six percent interest allowed by law. As part of a recent settlement, Navient will send about $60 million in compensation checks to military members who were overcharged.
Checks are set to be mailed on June 12 and will range from $10 to over $100,000 depending on how long the interest rate exceeded six percent, by how much it exceeded that limit, and what documentation the service member provided the governments independent administrator during the investigation.
On that date, members of the military can begin calling a Justice Department hotline at (855) 382-6421 with questions about eligibility for compensation.
Navient must also request that all three major credit bureaus remove any black marks on credit records that were caused by the overcharges.
According to the department, the company denied some benefits requests from borrowers and gave others more than $500 in excess interest. When the soldiers fell behind on payments, Navient took legal action against them, but failed to document their military service, which is a violation of the law.
Navient denied any wrongdoing in the matter and the Education Department, which hired the loan servicer, will continue using the companys services and has even given it more accounts, despite the proven misconduct.
If you or a loved one has been denied your benefits as a service member, contact Vets National Advocates to learn more about how we can help you get the help you need.