Details of the Sallie Mae SCRA Settlement With the U.S. Department of Justice | Federal Student Aid

Details of the Sallie Mae SCRA Settlement With the U.S. Department of Justice

On May 13, 2014, the Department of Justice (DOJ) announced and filed in the U.S. District Court for the District of Delaware a consent decree (or settlement) with Sallie Mae and Navient Solutions regarding possible violations of the Servicemembers Civil Relief Act (SCRA) with regard to private loans, U.S. Department of Education Direct Student Loans, and student loans originated under the Federal Family Education Loan Program. When approved by the court, as part of this settlement agreement, Sallie Mae is establishing a settlement fund to reimburse borrowers who may have been improperly denied SCRA benefits. 

Building on our work with DOJ, the Department of Education will be initiating its own review to help ensure our servicers are in full compliance with all provisions of the SCRA for our federally serviced loans, and determine if further actions should be taken.

If your student loans are serviced by Sallie Mae and you believe you were incorrectly denied SCRA benefits, we encourage you to continue to monitor this page where we will update information on how eligible servicemembers can receive reimbursement through this fund. Additionally, if you would like to learn more about the benefits afforded to servicemembers under SCRA, visit www.servicemembers.gov.