Five companies, that tell borrowers they can ease or get rid of student loan debt, are being sued by Illinois Attorney General Lisa Madigan.
Madigan said scam operators charge hundreds, or even thousands, of dollars in fees and falsely promise to ease their debt load, or get rid of student loans entirely under supposed programs endorsed by the Obama administration.
The promises, Madigan said, are often bogus, or the fees charged are for options already available for free. She said the companies violate Illinois law that prohibits charging upfront fees for so-called debt settlement services.
The lawsuits filed May 4, 2015 were against Consumer Financial Resources LLC, of Texas, which operated as Student Loan Resolve; Federal Student Loan Alliance LLC, based in California; Interactiv Education LLC, based in Florida, that operated as Direct Student Aid; the Chicago-based Nationwide Student Aid; and Student Consulting Group Inc., based in Georgia, that solicited consumers as University of One and Help Assist Me Default Resolution Services.
Madigan also announced her office’s new Student Loan Helpline, 1(800) 455-2456 (TTY: 1 (800) 964-3013), which will be answered by trained staff who can help you understand repayment options and how to avoid default.
To file a complaint regarding a problem with a student loan, or if you were targeted by a student loan debt-relief scam, you can file a complaint through the hotline or online – click here.