More than forty-two million Americans have student loans with an outstanding balance of more than 1.4 trillion dollars so it is no surprise that scammers are focusing their attention on these students and former students through scams that falsely promise to provide debt relief. I have written numerous times in the past about various student loan debt relief scams.  In the Scam of the day for August 14, 2024 I first told you that the Federal Trade Commission had sued Panda Benefit Services which did business as Prosperity Benefit Services and seven other names for falsely claiming that people who paid upfront fees for their program were guaranteed to receive loan forgiveness.  They also falsely claimed that they were affiliated with the Department of Education.

Now a final judgement has been issued in the case permanently banning Panda Benefit Services and its affiliates and operators from the debt relief industry and ordering them to turn over assets to the FTC to be used to compensate the victims of the scam. As more details emerge regarding the payment of those funds to victims of the scam, I will report them to you.

TIPS

The old adage still is true.  If it sounds too good to be true, it probably isn’t true.  Many of these student loan debt relief scammers promise quick loan forgiveness, which is unrealistic.  In addition, you should never pay any upfront fees for student loan debt relief assistance.  Those fees are illegal and are a sure indication that you are being scammed.  Also, remember my motto, “trust me, you can’t trust anyone.”  Don’t trust scammers merely because they claim that  they are affiliated with the government.  You also should never share your FSA ID with anyone.

I will keep you informed as to the progress of this lawsuit and if funds are obtained from the defendants to be returned to the scam victims, I will provide you with the information you need to make a claim.

Finally, if you are interested in knowing about legitimate options for reducing student loans, go to the Department of Education’s website which describes the various loan forgiveness plans offered by the federal government. Here is a link to that information. https://studentaid.gov/manage-loans/forgiveness-cancellation

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