Charities Getting Funds Left in Student Loan SettlementDecember 2, 2016 | :
by RANDALL CHASE, Associated Press
DOVER, Del. — A federal judge has agreed that $1.6 million left over from a government settlement with student lending giant Navient Corp. should be distributed to charities.
The Justice Department announced last year that nearly 78,000 members of the military would be reimbursed under a $60 million consent decree with Navient, formerly part of Sallie Mae, because they had been charged excess interest on student loans.
In a court filing this week, attorneys for both sides said that after identifying and paying eligible service members, roughly $1.6 million remains in the settlement fund.
Consistent with the settlement terms, attorneys agreed that the balance should be distributed among three nonprofit organizations.
The Posse Foundation’s Veteran Scholars Program and the Tragedy Assistance Program for Survivors each will receive about $675,000. The Warrior Canine Connection will receive about $250,000.