Anne TeBeest

Loan company sues Sallie Mae for anti-trust violations

The massive nation wide loan company, Sallie Mae, allegedly used coercive methods in its loan consolidation processes, according to a lawsuit filed Monday in federal district court in Alexandria, Va. The lawsuit, filed by competitor College Loan Corporation, accuses Sallie Mae of employing monopolistic practices, all of which violate the federal Sherman Antitrust Act, the Virginia Antitrust Act and the Higher Education Act. Sallie Mae has engaged in "anti-competitive behaviors," most importantly in their interpretation of the single-holder rule, said James Trefil, a member of the outside litigation counsel representing CLC.