Charleston 5/7/2015 3:36:54 PM
News / Education

Student Loan Debt Relief Scammers Face Serious Lawsuit

In this day and age, most college students have been forced to finance their education through student loans because the tuition at most American universities is just as expensive as buying a home. Unfortunately, due to a poor economy and tough job market, many of those graduates have experienced difficulties in finding gainful employment upon graduation. Many graduates are not currently producing a significantly higher income than they likely would be producing without the college degree. Therefore, it is not uncommon for borrowers who took out student loans to struggle to repay those debts.

As a result, debt relief agencies are frequently popping up all across the country. Many of these debt relief agencies offer results that seem just too good to be true. In Illinois, an Attorney General has decided to prosecute some of the con artists taking advantage of distressed borrowers. An ABC News article published May 4, 2015, states that, “nearly 40 million Americans have $1.2 trillion in outstanding student loan debt…,” and asserts that many con artists posing as legitimate debt relief companies are preying upon these borrowers. Read the full article here.

ABC News further indicates, “Richton Park resident Ruth Varela paid a debt relief company nearly $800 after they said they could help her repay nearly $6,000 in student loans. After paying a $399 upfront fee and a monthly charge of $79 after that, Varela said none of her payments were applied to her student loan balances.” These debt relief companies mislead distressed borrowers with false claims and deceptive advertising. Often, these companies are only offering to negotiate with debt collectors on the borrower’s behalf. They cannot guarantee any results in reducing the borrower’s student loan debt and are often unsuccessful in negotiating a significant reduction but they will nevertheless charge the borrower for their attempts to obtain the reduction.

Student Loan Law Group recognizes that these debt relief companies are often scammers who are engaging in predatory tactics and leave the distressed borrowers worse off than they were before hiring the debt relief companies. One of the most significant distinctions between those debt relief agencies and Student Loan Law Group is that Student Loan Law Group consists of licensed attorneys. Most debt relief agencies do not employ attorneys. If a borrower is truly overwhelmed with their debt, they need legal help. Non-attorneys cannot provide legal counsel. If they attempt to do so, they may be charged with the unauthorized practice of law and serious penalties could be imposed on them including hefty fines and even jail time.

Distressed borrowers or borrowers in default on their student loans need licensed attorneys to represent them at court proceedings to prevent or end wage garnishment, tax garnishment, and Social Security garnishment. Student Loan Law Group’s attorneys can provide legal counsel to those who really need help. Most borrowers who are not in default on their student loans can consolidate their loans on their own with a little guidance. Student Loan Law Group offers this guidance through an online knowledge base comprised of detailed articles. Borrowers who need help escaping default are encouraged to do their research and seek help from a reputable service like Student Loan Law Group.