Consumer Alert
FTC shuts down student loan debt relief scheme
It’s a staggering number. More than 42 million Americans owe a total of nearly $1.5 trillion in student loan debt. It’s no wonder people look for help. But not all help is legit. Scammers are targeting borrowers with student loan debt relief schemes that can actually make things worse.
In a new case announced today, the FTC alleges the operators of Mission Hills Federal and Federal Direct Group bilked borrowers out of more than $23 million. The FTC says these companies lured people with false promises to pay down student loans and lower monthly payments. According to the FTC, the companies also lied about taking over the servicing of the loans, which tricked people into submitting loan payments directly to them. In fact, the defendants diverted borrower payments to themselves.
What’s more, many of these borrowers went months, sometimes years, before learning their student loans weren’t being repaid. Why? The FTC says the defendants made people give their federal student aid IDs, or other personal information, to enroll in the debt relief program. They used that information to change borrowers’ contact information on U.S. Department of Education websites, which limited the borrowers’ contact with their federal loan servicers.
If you or someone you know feels overwhelmed by student loan debt, know this: There’s nothing a company can do for you that you can’t do yourself for free. If you have federal student loans, start with StudentAid.gov/repay. If you have private loans, talk with your loan servicer. For more information, check out ftc.gov/StudentLoans.
Here are a few tips to help avoid debt relief scams.
Spotted a scam? Let us know about it at ftc.gov/complaint.
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In reply to Got this call today. My by stl314
In reply to I got this exact voicemail by ljwthrow
In reply to Got this call today. My by stl314
In reply to Got this call today. My by stl314
In reply to Got this call today. My by stl314
In reply to Got this call today. My by stl314
In reply to Got this call today. My by stl314
In reply to Just received a call from by Jkrogs
In reply to I received a call from by Mike6291
If you want help with your student loan debt, remember: you don't need to pay someone for help. You can do everything a company can do, and you can help yourself for free.
If you have federal student loans, start with StudentAid.gov/repay.
In reply to My daughter just found out by Sherri1974
You can report this to the FTC at www.FTC.gov/Complaint. The information you give goes into a secure database that the FTC and other law enforcement agencies use for investigations.
Get information about federal student loans at www.StudentAid.gov. There's information about different repayment options and what to do if your loan payments are overdue.
In reply to I used Mission Hills Federal by Angyr Person
Please report this to the FTC at www.FTC.gov/Complaint. You can give the FTC your name if you want, and explain what happened. Or, you can just give information about the business. Any information you give goes into a secure database that the FTC and other law enforcement agencies use for investigations.
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In reply to I also got a call from Megan. by KevTheDev