U.S. Secretary of Education Miguel Cardona (Photo by Win McNamee/Getty Images)
These student loan borrowers will get more than $822,000 in student loan relief.
Here’s what you need to know — and what it means for your student loans.
Student Loans
While more than 40 million borrowers are hoping for wide-scale student loan forgiveness, the Federal Trade Commission (FTC) announced today that it would issue student loan relief to victims of a major student loan debt scam.
Student loan relief: the allegations
According to the FTC’s complaint in September 2019 filed in U.S. federal court in California, the FTC alleged that the defendants, Student Advocates and Equitable Acceptance Corporation:
- charged student loan borrowers illegal, upfront fees up to $1,400;
- falsely claimed these fees were applied to lower borrowers’ student loans;
- improperly steered student loan borrowers into high-interest loans to pay these fees;
- made false promises to student loan borrowers that the defendant’s services would, among other promises, lower student loan payments and eliminate all their student loans; and
- didn’t apply any money collected from student loan borrowers to reduce the borrowers’ student loan balances.
Student loan relief: the details
Here’s who qualifies and how to collect student loan relief:
- Who qualifies: student loan borrowers who were victims of this alleged student loan debt relief scam;
- How much…
