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. 

On May 28, 2015, a Department of Justice press release announced that starting in June, 77,795 service members will begin receiving $60 million in compensation for having been charged excess interest on their student loans by Navient Corp., the student loan servicer formerly part of Sallie Mae.

The checks, scheduled for mailing on June 12, 2015, range from $10 to more than $100,000, with an average of about $771. Check amounts will depend on how long the interest rate on a service member’s loan exceeded 6 percent and by how much, and on the types of military documentation the service member provided.

Service members with questions about their eligibility for monetary relief under the settlement should call 1-855-382-6421.

If you believe you were incorrectly denied benefits, you may send an inquiry to

To learn more about the benefits afforded to service members under SCRA, visit