Lawmakers Harsher on Student Debt Scams

Written by Administrator

Amidst the rise of student debt and increasing worries of a national crisis, lawmakers are being harsher on companies that use unlawful tactics to collect from student borrowers.

 Programs that falsely give debt consolidation or reduction borrowers at a large fee have increased, similar to mortgage scams that take advantage of homeowners. In the last few months, ten student debt-relief co. were targeted by lawyers throughout the nation, a lot of the of the companies are looking at legal action for fraud.

The use of these scams show student debt in the U.S. has increased substantially, and already disrupted the financial status of many across the nation.  When citizens can’t repay loans, it is impossible to fulfill the future that was trying to be built when they spent time going to college. 

Close to 43,000,000 students have approximately 1.2 trillion in student debt. Because of the amount of people finding it difficult to repay loans, there have been many companies offering assistance.