Sallie Mae Agrees To Cut $76M From Loans Over Default Fees

Law360, Los Angeles (July 11, 2013, 8:53 PM EDT) -- Sallie Mae Inc. will shave $76 million off student debt owed by 40,000 borrowers to settle a class action accusing the loan giant of unlawfully slapping a 25 percent collection cost fee onto defaulted loans, according to a Thursday filing in California federal court.

The plaintiffs said that while the private loan terms required them to pay collection agency fees incurred by Sallie Mae, the company breached its contract by imposing the costs at the time it placed the loans with collectors — before it incurred...
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