Madigan sues companies of student loan debt scams
From Illinois News Network
Illinois’ Attorney General is suing five companies she says were involved in student loan debt scams. The scams snag victims with large upfront fees to settle their debt using programs that are widely available for free from the federal government, something Attorney General Lisa Madigan says is nearly identical to other scams that victimize people with exorbitant credit card or mortgage debt.
“People who were legitimately trying to find someone to help them and turn to somebody who claimed to have expertise working through red tape ended up losing hundreds if not thousands of dollars before they realized it was a scam, the fall further behind on their loans and they end up in a much worse situation than they were to begin with.”
Madigan says those who fall victim to the student loan debt relief scams may have heard ads promoting quick debt relief but instead were charged big fees upfront for the services. With the announcement of the five lawsuits, Madigan also provided for a new student loan helpline that will assist in answering questions about various repayment options.
The hotline at 800-455-2456 will also act as an avenue to offer tips debtors can use to avoid loan default.