Lawsuit alleges Education Dept. overcharged students
By David Moltz | March 22, 2007The U.S. Department of Education has allegedly been overcharging individuals with consolidated student loans by unlawfully capitalizing interest, according to a class-action suit filed Monday. Capitalizing interest occurs when accrued interest is added to the loan principal, thereby increasing the loan amount. Steven Sprenger, lead counsel for the suit, said lead plaintiff Brenda K.


