Student Lender Northstar Faces Class Action

     LOS ANGELES (CN) – A federal class action claims that Northstar Education Finance, which has more than $5 billion in outstanding student loans, illegally rescinded its 0.75% interest rate reduction for borrowers who are less than two months in arrears. Northstar said it suspended the reduction in February “because it was facing financial difficulties.” Plaintiffs say that “does not provide it with carte blanche to breach its contractual obligations”.

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