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

Illinois Threatends to Withhold Funds if School Districts Don’t Test

Fresh
Student Testing

Chicago Public Schools have already declined to offer the PARCC assessment tests.

in Local

Springfield Teen Taken Charged in Tuttle Murder

policetape2

A 16 year old Springfield youth has been charged with First Degree Murder in Tuttle's death.

in Local

Durbin Introduces Bill to End Cuban Travel Ban

durbin

The travel ban has been in effect since 1960, ostensibly as a way to prevent Americans from supporting the Castro communist regime.

in Local

Lincoln Funeral Reenactment Could Be Economic Boon

lincoln

As Springfield prepares for the re-enactment of Abraham Lincoln's funeral in May, officials say the 150th anniversary could be an economic windfall for the city.

in Local

Suspect in Wednesday Shooting Arrested

KATRELL MORRIS

Springfield Police have arrested the man they believe is responsible for a non-fatal shooting near King and Stuart earlier this week.