News

Student Loan Rip-offs Rile Lisa Madigan

Student Loan Rip-offs Rile Lisa Madigan

The Illinois attorney general is suing two companies for scamming people looking for student loan debt relief.

Attorney General Lisa Madigan says Chicago-based First American Tax Defense LLC and Broadsword Student Advantage of Frisco, Texas advertised across Illinois about programs to eliminate student loan debt. The scam starts, according to Madigan, by charging an upfront fee up to $1,200 for applying for government assistance.

“All of the services that they take your money for are completely free, available at no cost from the (U.S.) Department of Education,” Madigan said. “I mean, it’s a terrible scam.”

Madigan says that in itself violates a state law that forbids charging upfront fees for debt relief programs. The companies may also be charging monthly fees, according to Madigan, without delivering the promised results.

Madigan says similar scams have become more common as more people struggle to pay off student loans, so she expects more lawsuits to be filed.

 

Recent Headlines

in Local

Benedictine University Holds Q/A For Soon-to-be Former Students

college

University officials say traditional program has more than 500 students

in Local

Illini Basketball Coming to Springfield’s PCCC in 2015

university illinois

The move is being made due to construction at the State Farm Center.

in Local

Minimum Wage Hike Supporters Take Credit for Early Voting Spike

money

Early voting is up in Illinois over the last mid-term election, and a group supporting the minimum wage increase is claiming some of the credit.

in Local

Iles School Locked Down Due To 14th Street Shooting

gun

Iles School was locked down Thursday afternoon after a shooting involving multiple people.