Northstar Education Finance/Total Higher Education (T.H.E.) Student Loan Contract Violations

AOn April 8, 2010, the hearing on Final Approval of the Northstar Education Finance, Inc. d/b/a Total Higher Education Settlement was held before the Court. The Judge assigned to the case issued his final approval of the Settlement that same day. The next step in the process is a waiting period of 60 days from the date of the Order granting approval to see if any class members formally appeal that Order. If an appeal is filed, it will delay implementation of the settlement until after the appeal is resolved. We are optimistic that will not happen, and if we are correct, after the 60-day time period has run, Class Members should begin to see their individual settlement benefits processed within the next 90 to 120 days.

If you have further questions on specific benefits you may receive, you should check the Northstar settlement website at http://www.northstarloansettlement.com or contact the Claims Administrator directly.

Multiple cases were filed during 2008 in several jurisdictions alleging that Northstar Education Finance, d/b/a Total Higher Education (“Northstar”) broke its 1999 contractual agreement which outlined an interest rate reduction for student loan customers if they were less than 60 days in arrears on their monthly payments. On March 3, 2009, the Court issued an Order appointing Zimmerman Reed as one of the three firms acting as Interim Class Counsel in the consolidated action. After extensive Court-directed mediation, the parties reached a mutually agreeable settlement in this litigation and entered into a Stipulation of Class Action Settlement agreement on December, 14, 2009.

A hearing on the Parties’ motion for preliminary approval of the settlement was held, and on December 21, 2009, the Court issued its Order granting the motion for preliminary approval of the settlement, conditionally certifying a settlement class, and ordering Northstar to provide Notice to each of the prospective Settlement Class members by e-mail, U.S. mail, and internet publication, and to set up the Settlement website.

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