Sallie Mae Escapes Suit Over High-Interest Student Loans

Law360, New York (September 24, 2013, 5:28 PM EDT) -- A federal judge on Tuesday shot down a proposed class action alleging SLM Corp. and Sallie Mae Inc. issued high-interest private education loans to aspiring chefs without regard to the students’ ability to repay them, saying the claims didn't meet pleading standards.

The plaintiffs are graduates of the California Culinary Academy who allege SLM and Sallie Mae acted as the “preferred lender” for CCA, offering high-interest private loans to plaintiffs, knowing the educations plaintiffs sought were unlikely to fit plaintiffs to ever repay the loans. In...
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