October 19, 2021

Scam dealing with federal student loan debt making rounds » Scammer News

By TOM LATEK, Kentucky Today

FRANKFORT, Ky. (KT) – State officials are warning Kentucky students who owe money on federal student loans that they should watch out for scamming loan repayment companies, who may charge large fees for services that are available for free.

Some third-party companies claim to offer document preparation services and act as though they can help students qualify for a loan forgiveness program, but they may want upfront fees and personal and financial information. The Federal Trade Commission says it is illegal for companies to charge upfront fees before providing debt relief services.

“My administration will always put education first,” stated Gov. Andy Beshear, “and part of that means protecting Kentucky students after they’ve graduated, from predatory companies trying to take advantage of them, as they pay back the loans that helped them pursue their education goals.”


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