The FTC is sending over $4.1 million in refunds to people who lost money in student loan forgiveness scams. Here's what to know.
More than $4.1 million in refunds are being sent to people who lost money to student loan forgiveness scammers.The Federal Trade Commission on Wednesday announced the refunds for victims who were lured by fake loan forgiveness claims. The alleged scheme used many names, including Mission Hills Federal, Federal Direct Group, National Secure Processing, and The Student Loan Group, the FTC said.
" "The operators also tricked consumers into sending their monthly student loan payments directly to the defendants by falsely claiming to take over the servicing of the consumers’ loans," the agency said.But in reality, few payments were actually applied to the borrower’s student loans – and in many cases – none at all. Instead, the scammers pocketed the money.
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