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Jack's Consumer Awareness Portal

Category: Student Loans

Student Loans are financial aids provided to help cover the costs of higher education, which borrowers repay over time with interest. However, fraud in student loans can manifest in various ways, including identity theft, where criminals use someone else’s personal information to obtain loans, or falsifying information on loan applications to secure higher amounts than needed. Scammers may also exploit borrowers by offering fraudulent loan forgiveness schemes or charging fees for services that should be free, such as application assistance or repayment counseling. These fraudulent activities not only harm borrowers financially but also contribute to widespread issues of debt and financial instability.

FTC-PR-240313-1

March 13, 2024

FTC-PR-240313-1 (Mar. 13, 2024)

FTC Sends More Than $4.1 Million in Refunds to People Who Lost Money to Student Loan Debt Relief Scheme – Agency said scammers lured consumers with fake loan forgiveness and pocketed their money.

The Federal Trade Commission is sending more than $4.1 million in refunds to people who lost money to student loan debt relief scammers who lured consumers with fake loan forgiveness claims and pocketed their money. The scheme used many names including Mission Hills Federal, Federal Direct Group, National Secure Processing, and The Student Loan Group.