The FTC says fraud targeting borrowers is rising since President Biden said he would seek to cancel up to $20,000 in student-loan debt relief for qualified borrowers
SharePresident Biden’s student-debt forgiveness plan isn’t the only change coming for student-loan borrowers. His plan also changes how loans will be repaid, turning many into, essentially, free college grants. WSJ explains.
Two separate schemes that allegedly defrauded student-loan borrowers of $12 million after promising them debt relief have been halted by a federal court, the Federal Trade Commission said Monday. Two companies falsely claimed they were affiliated with the Education Department and told borrowers they would take over the servicing of their student loans, regulators said in a complaint filed in federal court in California last month. A judge last week froze the assets of the companies and their owners and put a temporary restraining order in place before a court can consider the cases.
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