Companies That Offer Help With Student Loans Are Often Predatory, Officials Say

Companies That Offer Help With Student Loans Are Often Predatory, Officials Say

scam smartIf you were offered a way to get rid of your dreadful student loans wouldn’t you take it? Some people desperate to end student loan debts are falling into dangerous traps.

There have been two separate lawsuits that Broadsword Student Advantage and First American Tax Defense they duped vulnerable borrowers into paying for help that never arrived.  In the lawsuit Lisa Madigan, the Illinois attorney general, contends that the businesses lured borrowers into paying hundreds of dollars upfront, and in the case of Broadsword, $49.99 a month after that, according to copies of the lawsuits reviewed by The New York Times.

The victims of these student loan scams are being misled into paying high fees for services that are not being delivered.  Some companies are charging customers debt assistance that they could of received from the Education department.

The student debt relief scams are an indicator of how much people are struggling with student debt.  Student debt is no longer considered as good debt.

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Picture by www.globalfinancialgroup.co.uk

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