Soaring student debt opens the door to relief scams.

September 5, 2019 Business Money

Financial Preparation Services of Irvine, Calif., boasts on its website three glowing testimonials for its debt-relief services for student loans. It quotes Anthony Zwichirowski of California, Dawn Robinson of New Hampshire and a smiling Dean Edelman of Virginia, who says using the company “was the smartest move I have made since graduating.”

One or more of the three ostensibly happy borrowers also appears, with slight variations, on at least 25 other websites of purportedly different companies offering student-loan debt relief in the past four years, The Wall Street Journal found.

Student debt is soaring—it is now nearly $1.5 trillion—and defaults are at a record. That has been fertile ground for companies that promise to help stretched borrowers by navigating the maze of federal programs that can reduce or forgive debts for those who qualify, such as public-service workers or people on low incomes.

Some companies operate legally, although there is nothing they offer that borrowers can’t get free, regulators say. Other firms are outright scams, or make promises to borrowers that are illegal, regulators and consumer advocates warn.

More info at: https://www.msn.com/en-us/money/careersandeducation/soaring-student-debt-opens-the-door-to-relief-scams/ar-AAGlYfX?li=BBnb7Kz

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