Illinois Sues 5 Companies for Student Loan Repayment Scams



Illinois' attorney general has filed lawsuits against five companies and is accusing them of scamming people who need to repay student loan debt.

Attorney General Lisa Madigan filed the lawsuits last month. Her office says the scammers charge borrowers costly upfront fees with the false promise that their debt will be forgiven or decreased. Madigan also says the scammers will charge for options that are already available to borrowers for free.

Madigan says the companies - based in California, Illinois, Florida, Georgia and Texas - violate an Illinois law that bans charging upfront fees for debt settlement services. Those companies are: Consumer Financial Resources LLC operating as Student Loan Resolve; Federal Student Loan Alliance LLC; Interactiv Education LLC, operating as Direct Student Aid; Chicago-based Nationwide Student Aid; and Student Consulting Group Inc., that solicited consumers as University of One and Help Assist Me Default Resolution Services.

The Illinois attorney general's office also has a helpline for borrowers with student loans. It's available at 1-800-455-2456.

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