Article: Kabateck Brown Kellner, LLP: Northstar Student Lender Sued for Breaking Contract.

Lured students with promise of rate reduction, then eliminated it to boost revenues; Student borrowers stand to lose $570 million, states suit

LOS ANGELES, July 14 /PRNewswire/ -- Northstar Education Finance broke its contract with its student loan customers and raised their interest rates to generate extra revenues to cope with its financial difficulties, a class action lawsuit filed today in U.S. District Court, Central District of California in Los Angeles by Kabateck Brown Kellner, LLP states. The suit also states that the scheme would reap $570 million for Northstar.

"What kind of corporation protects its profits by breaking a contract it's made ...

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