Gibbons v. Riley: U.S.D.C., E.D.N.Y.  Class action filed in 1994 against the United States Department of Education (“USED”) for violation of the terms of promissory notes of hundreds of thousands of student loan debtors in its efforts to collect on defaulted loans.  USED was charging 42.84% of principal plus interest as a collection fee even for students who had signed promissory notes limiting the fee to 25%.  USED changed its practice and initiated settlement talks as soon the case was filed, recognizing that they were totally in the wrong.  The settlement required USED to determine which debtors had signed “capped” promissory notes and refund all overcharges.  USED began their complicated computer process for identifying overcharged debtors in approximately March 1999 and provision of relief is almost complete.  (JGS)