Student Debt Relief Scams Targeting Borrowers

May 31, 2016 Posted by kingcade

If you are struggling with student loan debt, you’re not alone. The FTC and the State of Florida announced lawsuits against two “alleged” student loan debt relief agencies. Consumer Assistance Project and Student Aid Center promised to get borrowers’ loans forgiven or significantly reduced, according to the FTC.

Consumer Assistance targeted borrowers online and over the phone, claiming they would get relief through government or by disputing loans.  Student Aid Center used radio ads, text messages, and featured ads in search results, promoting “Obama Loan Forgiveness.”

But borrowers who paid the companies did not get their loans forgiven or even reduced.  At most, the companies got borrowers’ loans put into deferment or forbearance, where loan payments are postponed, but interest still accrues.

Student Aid Center made certain situations worse by telling people to stop contacting their lenders and pay them, instead. Borrowers ended up paying thousands, but did not get the promised relief.

Student loan forgiveness programs are available in very limited circumstances. The FTC has the following new materials to help borrowers:

  • Student Loan Debt Relief explains how to spot a debt relief scheme, and what people struggling with student loans can do to help themselves.
  • Maria and Rafael Learn the Signs of a Debt Relief Scam tells the story of a couple trying to repay debt they accumulated for their daughter’s college education. It is the latest in a series of graphic novels to raise awareness about scams targeting Latin communities.
  • This list shows every company and individual ever banned from providing debt relief and mortgage assistance relief services by an FTC order.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.