Most of the time, the student loan frauds will promise you that they will end the student loan debt. Don’t immediately agree to their terms which will lead right into their trap – milking millions of dollars out of students. There are a lot of fraudulent companies that adopt this tactic, and some even claim that they are affiliated with the US Department of Education. Please do your research on the company before deciding whether to accept or reject them.
The FTC got a restraining order to restrain a few companies who were allegedly involved in the scamming business from the students. It was reported by the FTC (Federal Trade Commission) that these companies have been promoting their scamming business to the students via different mediums, namely, ads via radio and tv, online ads and telemarketing.
These alleged companies were promising to eliminate the student loan debt by providing financial assistance by having the students in enrolling in their programs that would allegedly have their loans consolidated and repaid. The upfront fee of one program was $1800 if a student agrees to sign up. However, the promise would not be fulfilled, and the students were scammed by them.
As the complains were filed to the FTC’s Bureau of Consumer Protection, the defendants faced hefty charges. Here is an infographic that tells about the student loan scam and how to identify them and what precautions you must take.
Infographic by: educationconnection.com