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Representatives for the Pentagon could not be reached for comment by press time.

In addition to the repayments to servicemembers, the former Sallie Mae group agreed to pay a $55,000 civil penalty to the government.

Meanwhile, the new Sallie Mae Bank will also be paying another agency heftily. The company reached a settlement with the FDIC over incorrect late fees on loans. It agreed to reimburse $30 million and pay the government a fee of $3.3 million.

Education support has long been used by the government both to attract new recruits to the military and assist those already serving. The Defense Department offers a number of student grants and other assistance to active duty personnel. And the GI Bill, started in the waning years of World War II, provides financial support to veterans wishing to continue their education.

In addition to the settlement, the components of the former Sallie Mae company said they are trying to streamline the process military personnel can use to apply for the benefits, as well as increasing the number of customer service workers trained on military loans.