FTC Takes Action Against Student Loan Scammers, Recovering Millions

Two companies have been accused of cheating student-loan borrowers out of $12 million by making deceptive claims about repayment plans and "loan forgiveness that did not exist," according to the Federal Trade Commission. The companies allegedly lured borrowers into paying hundreds of thousands of dollars in illegal fees by tricking them into thinking they were enrolling in a legitimate repayment program. The FTC also accused the companies of falsely claiming to be representatives of the Education Department. Scams targeting student-loan borrowers are expected to rise later this year as student-loan payments are set to resume.