An amended settlement agreement has been reached in the Sallie Mae class action lawsuit settlement we reported on in October 2010. Under the new class action settlement agreement, Sallie Mae has agreed to pay an additional $4.65 million to cover potential claim payments to Settlement Class Members not included in the original settlement.

To refresh your memory, Sallie Mae agreed to pay $19.5 million to settle a class action lawsuit that accused the lender of violating the Telephone Consumer Protection Act (TCPA) by making automated or pre-recorded phone calls to Sallie Mae customers’ cell phones without their prior express consent. Class Members of the Sallie Mae class action settlement include all persons who received one of these automated calls from Sallie Mae or one of its subsidiaries between October 27, 2005 and September 14, 2010.

The original class action settlement agreement excluded Sallie Mae customers who had ever been 180 days or more delinquent on a Sallie Mae loan payment or who had already paid off their Sallie Mae loan balance. The new class action settlement agreement now includes these consumers.

Besides requiring Sallie Mae to pay an additional $4.65 million into the class action lawsuit settlement fund, the amended settlement also provides extended deadlines for Class Members to file claim forms, revocation request forms, objections and exclusion requests. These new deadlines can be found at www.ArthurTCPASettlement.com.

The amended settlement agreement also provides that Class Members who have been 180 days or more delinquent on an extension of credit at any time are now eligible for a cash award if they have since repaid that extension of credit in full; otherwise they are eligible only for a reduction of their existing debt, which is the same relief those Class Members were entitled to under the original class action settlement agreement. The amended agreement also allows Class Members who excluded themselves from the class action lawsuit settlement to withdraw that exclusion by written request on or before the objection deadline. Further details on the amended settlement agreement can be found at www.ArthurTCPASettlement.com.

Class Members of the Sallie Mae class action lawsuit settlement are entitled to receive either a cash award of $20 to $40, up to a maximum of $500, or a reduction of their principal balance if they submit a claim form by the new deadline of August 31, 2012.

Class Members who submit a valid and timely claim form will be eligible for the following award options:

-- Class Members who have never been 180 days or more delinquent on their payments on extensions of credit owned or serviced by Sallie Mae or any other affiliate or subsidiary of SLM Corporation will be entitled to make claims for: (a) a cash payment (the “Cash Award”); or (b) a one-time reduction from the principal balance of the Settlement Class Member’s outstanding extension of credit (the “Reduction Award”).

-- Class Members who have been 180 days or more delinquent but who subsequently repaid the extension of credit in full will be entitled to make a claim for a cash payment (the “Cash Award”).

-- Class Members who have, at any time, been 180 days or more delinquent on their payments on extensions of credit owned or serviced by Sallie Mae or any other affiliate or subsidiary of SLM Corporation, and have not repaid their loan in full, will not be entitled to make a claim for a Cash Award, but rather are eligible for a one-time reduction from the principal balance of the Class Member’s outstanding extension of credit (the “Reduction Award”).

-- Class Members whose extensions of credit have been charged off for purposes of accounting shall not be entitled to a Cash Award or Reduction Award. Instead, if there is any money remaining in the settlement fund after payment of various settlement costs and monetary awards, such monies will be distributed to court-approved, non-profit charitable organization(s) with the mission of promoting access to higher education. In addition, with respect to Class Members who do not have and have not had any lending or servicing relationship with Sallie Mae, or any other affiliate or subsidiary of SLM Corporation, Sallie Mae will make a minimum cy pres payment of $85,000 to organization(s) devoted to promoting higher education.

Claim forms and more information on your rights in the Sallie Mae TCPA Class Action Lawsuit Settlement can be found at www.ArthurTCPASettlement.com.