Sallie Mae Sued Over Consolidating Student Loans

One of Sallie Mae's competitors on Monday sued the nation's largest holder of student loans, alleging that it improperly denied borrowers the right to consolidate education loans with the lender of their choice. College Loan Corp. also said that Sallie Mae has illegally offered inducements such as free software to colleges and universities to get them to steer students to lenders that sell their loans to Sallie Mae.

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