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action claims that Northstar Education Finance, which has more than $5 billion in outstanding student loans, illegally rescinded its 0.75% interest rate reduction for borrowers who are less than two months in arrears.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".

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit