FTC In the News: Student Loan Debt Relief Scams | Federal Trade Commission

Описание: Are you among the 44 million Americans who have taken out student loans? Tune in to find out more about scams that target borrowers.

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Transcript:
Are you among the 44 million Americans who have taken out student loans?

If you have student loan debt, then paying it off quickly is probably very important to you. The reality is that paying off this debt is often a slow process that can take several years. Unfortunately, scammers know people with student loan debt can be vulnerable. They’ll say they can get rid of your debt quickly, but they’re just out to get your money. Don’t believe them and NEVER share your personal information with them!

In this episode of FTC in the News, you’ll hear about a recent FTC action that shut down one of these student loan debt relief scams. You’ll also learn a bit more about what these scams look like and what you can do to avoid them.

So – who did the FTC charge and why?

According to the FTC’s complaint, the operators of Mission Hills Federal and Federal Direct Group lured consumers into paying hundreds to thousands of dollars in illegal upfront fees with false promises to lower consumers’ monthly student loan payments. The defendants allegedly tricked consumers into submitting their monthly student loan payments directly to the defendants by falsely claiming that they would take over servicing the consumers’ loans. In reality, the defendants either only applied minimal payments on consumers’ loans or, in many instances, applied none of the payments to the loans, diverting consumers’ payments to themselves. The FTC charged the defendants with violating Section 5 of the FTC Act and the Telemarketing Sales Rule.

There are a few things you should know about student loan debt relief scams so you can avoid them.

First, scammers will often encourage you to pay up-front for their services. Remember -- never pay an up-front fee for help with your debts! It’s illegal for companies to charge you before they help you. If you pay up-front, you may never get any help — or get your money back.

Some scams promise quick debt relief while asking for a quick decision from the borrower. But only scammers promise fast loan forgiveness. Before they know the details of your situation, scammers might say they can quickly get rid of your loans through a loan forgiveness program — programs most people won’t qualify for. Or they might say they will wipe out your loans by disputing them. But they can’t do either. Don’t be rushed into a bad decision, and remember: there are no quick fixes for student loan debt.

Lastly, some of these scammers claim they need your Federal Student Aid, or FSA ID to help you. Don’t share your FSA ID with anyone. It could give scammers access to your account and control of your personal information.

If you’re watching this video and thinking – I now know how to avoid scammers, but what can I actually do about my student loans? - There are resources available to help you navigate your student loan debt.
You don’t have to pay for help with your student loans. There’s nothing a company can do for you that you cannot do yourself for free. If you are a federal borrower, start with StudentAid.Ed.gov/repay. If you are a private borrower, start by talking with your loan servicer.
For more information on student loan debt, please visit FTC.gov/StudentLoans or StudentAid.Ed.gov. To report a student loan debt relief scam, please visit ftc.gov/complaint.
Thank you for joining us on FTC In the News and we’ll see you next time!

SOURCES: https://www.ftc.gov/news-events/press...