The Federal Trade Commission announced on Wednesday it is refunding $4.1 million to 27,584 consumers who fell victim to student debt forgiveness scams.
Fraudsters "tricked students into paying hundreds to thousands of dollars in illegal upfront fees and pretended to lower consumers' monthly student loan payments," the FTC said in a press release.
Additionally, the operators claimed to take over the servicing of consumers' loans and thus, often pocketed consumers' monthly payments, the agency said.
Scammers lure student loan borrowers by offering ways to lower their monthly payments or even eliminate their balances.
Use these tips to avoid losing money to a student loan scammer.
Persons:
Fraudsters, it's, scammer
Organizations:
Federal Trade Commission, Mission Hills Federal, Federal Direct Group, Data Initiative, FTC, Department of Justice