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How to Avoid Student Loan Forgiveness Scams

How to Avoid Student Loan Forgiveness Scams

Student loan forgiveness calls, emails, or text messages setting off your scam sensors? Read on to learn how to identify and avoid student loan forgiveness scams and find out what you should do if you think you’ve been scammed.

Scams come in all shapes and sizes, from phone calls and emails to text messages. You may  encounter scams tied to current events. But sometimes it’s as simple as a fake promise to work fast and save you lots of money. Remember: A scam doesn’t have to be elaborate or complex.

The Federal Trade Commission received 495,855 fraud reports in the first quarter of 2023.

There are legitimate programs and resources available if you need help with your federal student loans, including the

You can work with your loan servicer to explore what options are right for you—free of charge. But many companies will try to take advantage of borrowers by guaranteeing immediate results or requesting money up front for services they can’t provide.

What do common scams look like?

 

Protect Yourself from Cyber Scammers and Identity Thieves!

Protect Yourself from Cyber Scammers and Identity Thieves!

As a college student, you live on your devices—like your phone and laptop—and rely on them for your social and scholastic lives. Cyber criminals and identity thieves know that too, which is why so many prey on college students, looking to steal your personal information, your money, or both!

The impact of these student-centered scams can be severe—your identity stolen, credit cards and loans taken out in your name, bank account zeroed out. That’s why the U.S. Department of Education Office of Inspector General (OIG) encourages you to take these simple steps to avoid falling victim to student-centered scammers, and shares what to do if you think you’ve been caught in their traps!

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Student Loan Borrowers: Take Actions to Protect Yourself from Student Loan Forgiveness and Debt Relief Scams

Student Loan Borrowers: Take Actions to Protect Yourself from Student Loan Forgiveness and Debt Relief Scams!

Fraudsters and cyber criminals prey on college graduates and their desire to pay down or consolidate student loan debt. Don’t fall for it!

Your identity stolen. Credit cards and loans taken out in your name. Bank account zeroed out. Credit score ruined. This is what can happen if you fall victim to a student loan debt relief scam!

Dishonest companies and cyber criminals are targeting college graduates, sending unsolicited texts, emails, or calls with promises to help reduce your student loan debt, consolidate your student loans, or eliminate your student loans completely. You may also see their ads pop up on social media. Don’t fall for it—these are likely scammers coming after your money, your personal information, or both.

The U.S. Department of Education Office of Inspector General (OIG) encourages you to take these simple steps to avoid falling victim to student loan scammers, and shares actions to take if you think you’ve been caught in their traps.

Read Full Article
Protect Yourself from Student Loan Debt Relief Scams

Protect Yourself from Student Loan Debt Relief Scams

Fraudsters and cyber criminals prey on college graduates and their desire to pay down or consolidate student loan debt. Don’t fall for it!

Your identity stolen. Credit cards and loans taken out in your name. Bank account zeroed out. Credit score ruined. This is what can happen if you fall victim to a student loan debt relief scam!

Dishonest companies and cyber criminals are targeting college graduates, sending unsolicited texts, emails, or calls with promises to help reduce your student loan debt, consolidate your student loans, or eliminate your student loans completely. You may also see their ads pop up on social media. Don’t fall for it—these are likely scammers coming after your money, your personal information, or both.

The U.S. Department of Education Office of Inspector General (OIG) encourages you to take these simple steps to avoid falling victim to student loan scammers, and shares actions to take if you think you’ve been caught in their traps.

Read Full Article
USA Student Debt Relief Receivership

Receiver’s First Cash Accounting Report

Receiver’s First Cash Accounting Report – View Report

USA Student Debt Relief Receivership

Receiver’s Preliminary Interim Report

Receiver’s Preliminary Interim Report – View Report

Federal Trade Commission

FTC Acts to Stop Debt Relief Scheme Targeting Spanish-Speaking Student Loan Borrowers

FTC Acts to Stop Debt Relief Scheme Targeting Spanish-Speaking Student Loan Borrowers

Federal Trade CommissionThe Federal Trade Commission has stopped the operators of a scheme that it says tricked financially strapped consumers seeking student loan relief into paying hundreds of dollars in junk fees. The operators often targeted Spanish-speaking consumers in Puerto Rico, pretended to be affiliated with the Department of Education and its loan servicers, and made false promises of low, permanently fixed monthly payments and loan forgiveness.

federal court temporarily halted the scheme and froze its assets at the request of the FTC, which seeks to end the unlawful practices and secure redress for the thousands of consumers who have been harmed.

“By pretending to be affiliated with the Department of Education and misrepresenting features of its free income-driven loan repayment programs, these scammers bilked millions from the consumers these programs were designed to help,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We are pleased that the court preliminarily shut down this predatory operation and froze its assets, and we will continue our efforts to crack down on junk fees, unwanted calls, and exploitation of consumers struggling with student loan debt.”

According to the FTC’s complaint, since at least April 2019, Florida-based Start Connecting LLC and Colombia-based Start Connecting SAS (collectively doing business as USA Student Debt Relief (USASDR) and their owners and operators Douglas Goodman, Doris Gallon-Goodman, and Juan Rojas have enticed consumers by falsely suggesting an affiliation with the government or its student loan servicers. USASDR also falsely promised to enroll consumers in programs that guarantee permanent low, fixed monthly payments—as low as $9 per month—followed by generous lump-sum loan forgiveness of the remaining balance. In exchange for enrollment, the operators have charged consumers illegal advance fees of several hundred dollars followed by monthly fees of as much as $29. Although USASDR claimed it would apply consumers’ monthly payments to their loan balances, in reality USASDR’s operators pocketed consumers’ hard-earned money and offshored much of the funds to Colombia.

The complaint also notes…

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Federal Trade Commission

La FTC actúa para detener un esquema de alivio de deudas que apunta contra deudores de préstamos estudiantiles hispanohablantes

La agencia dice que los estafadores fingieron estar afiliados con el Departamento de Educación y atrajeron a consumidores con problemas financieros con falsas promesas y comentarios positivos falsos

Federal Trade Commission

La Comisión Federal de Comercio (FTC, por su sigla en inglés) ha detenido el accionar de los operadores de un esquema que, según afirma, engañaba a los consumidores con problemas financieros que buscaban alivio para sus deudas de préstamos estudiantiles para lograr que pagaran cientos de dólares en cargos adicionales u ocultos. Los operadores a menudo apuntaban a consumidores de habla hispana de Puerto Rico, fingían estar afiliados con el Departamento de Educación y sus administradores de préstamos, e hicieron falsas promesas de pagos mensuales bajos y permanentemente fijos y condonación de préstamos.

A petición de la FTC, una corte federal detuvo temporalmente el esquema y congeló sus activos, con lo cual se procura terminar con las prácticas ilegales y obtener resarcimiento para los miles de consumidores que han sido perjudicados.

Samuel Levine, Director de la Oficina de Protección del Consumidor de la FTC dijo al respecto: “Al fingir una afiliación con el Departamento de Educación y tergiversar las características de sus programas gratuitos de repago de préstamos basados en los ingresos, estos estafadores les robaron millones de dólares a los consumidores para quienes se habían concebido estos programas de ayuda”. Y agregó: “Nos complace que la corte haya clausurado preliminarmente esta operación predatoria y haya congelado sus activos, y continuaremos con nuestros esfuerzos para terminar con los cargos adicionales y ocultos, las llamadas no deseadas y la explotación de los consumidores que están luchando con sus deudas de préstamos estudiantiles”.

Según se indica en la demanda de la FTC, desde al menos abril de 2019, Start Connecting LLC, con sede en Florida, y Start Connecting SAS, con sede en Colombia (que operan colectivamente como USA Student Debt Relief (USASDR) y sus propietarios y operadores Douglas Goodman, Doris Gallon-Goodman y Juan Rojas han atraído a los consumidores sugiriendo falsamente una afiliación con el gobierno o con sus administradores de préstamos estudiantiles. USASDR también prometió falsamente inscribir a los consumidores en programas que garantizaban pagos mensuales fijos, bajos y permanentes, tan bajos como $9 por mes, seguidos de una generosa condonación del préstamo en forma de suma global del saldo restante. A cambio de la inscripción, los operadores han cobrado a los consumidores cargos adelantados ilegales de varios cientos de dólares seguidos de cargos mensuales de $29. Aunque USASDR declaró que aplicaría los pagos mensuales de los consumidores a los saldos de sus préstamos, en realidad los operadores de USASDR se embolsaron el dinero que los consumidores ganaron con tanto esfuerzo y deslocalizaron gran parte de los fondos hacia Colombia.

La denuncia también señala que…

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