Military members to get refunds for illegally inflated student loans
HARTFORD–Current and former members of the military are being advised to check their mailboxes this weekend.
Sen. Richard Blumenthal announced that a huge sum of money is being given back to service members and veterans. The money is a refund from federal student loan servicer Navient Corporation, which operated as Sallie Mae until last year, which the U.S. Department of Justice determined had charged illegal and excessive rates on its student loans.
The violation derives from the Servicemembers Civil Relief Act, which caps student loan interest rates for those who serve in the military at 6 percent while they are active duty.
Beginning June 12, Navient Corporation will mail out checks after agreeing to pay back $60 million. In all, 77,975 service members and veterans nationwide are expected to receive a check, and 713 of those military members have Connecticut addresses. The average check will be for $771, but some could get as much as $10,000.