Tag Archives: FTC

How Can I Spot Student Loan Scams?

The Federal Trade Commission (FTC), 11 state Attorneys General (AGs) and the District of Columbia recently launched Operation “Game of Loans” to shut down scammers who were ripping off struggling student loan borrowers. As a result of the operation, the FTC and the AGs have filed actions against dozens of defendants who are accused of charging borrowers $95 million in illegal fees. The acting chairwoman of the FTC was not kidding when she said, “winter is coming” for debt-relief scams that prey on struggling borrowers. Operation Game of Loans may not succeed in permanently shutting down student loan scams. Some student loan advocates have compared these scam operations to a game of “whack-a-mole.” Once student loan scams are shut down, more appear to take their place. Fortunately, student loan scams are typically easy to recognize because they make similar promises to borrowers. Scammers could make claims that include: They are…
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