Minnesota Attorney General investigating over 50 student loan companies for ‘repayment’ scams
The Office of the Minnesota Attorney General is investigating 52 student-loan debt-relief companies who allegedly violated Minnesota law by misstating their services.
Minnesota Attorney General Keith Ellison said in a press release on Wednesday that the companies, who are mostly based in California, are suspected of violating consumer protection laws by misrepresenting their fees and services, as well as falsely promoting student-loan forgiveness.
Minnesotans just want to be able to afford their lives, and the cost of student loans that too many borrowers have to take out is already too high. The fact that fraudsters prey on borrowers by charging exorbitant fees and making promises they can’t deliver on is offensive. We’ve held companies like this accountable before and we’re doing it again. I encourage any Minnesotan who’s been preyed upon by a company promising to help them forgive their student loans to contact my office so we can hold that company accountable.Minnesota Attorney General Keith Ellison
Since at least 2016, the office of AG Ellison has recovered and returned millions of dollars in “repayment scams” belonging to Minnesota consumers, according to the press release.
The 52 companies that AG Ellison is investigating are:
- 77 Elite LLC
- ABS (A Better Solution) Student Loans
- Allied Enrollment Centers LLC
- Allied Financial Services
- Alum Financial LLC, aka Grads Financial
- Alumni Help Center
- Alumni Support Center
- American Doc Prep, Inc.
- American Processing Support
- Amerifed Doc Prep, LLC
- Certified Enrollment Center
- Client Processing Services
- Cornerstone Doc Pre
- Criner Financial Group LLC
- Debt Relief Assistance Plus
- Documents Done Right
- Docupros, aka United Specialists
- Education Financial
- ENM Consulting Services LLC
- Fed Pro, aka Fed Help LLC
- Federal Document Assistance Center LLC
- Federal Document Preparation Services LLC
- Federal Student Loan Doc Prep LLC
- Financial Student Services LLC
- First Fidelity Services LLC, aka Mabak Enterprises LLC
- Freedom Financial Aid
- Graduate Doc Center
- Liberty Student Loan Forgiveness
- Loan Forgiveness Enrollment Center
- Marketing Services
- National Budget Planners of South Florida, Inc.
- National Debt Education Relief
- National Debt Relief LLC
- National Student Loan Relief, aka My Payment Help Center LLC
- Network 46, Inc.
- Processing Direct, aka Student Loan Processing Direct
- Riverwalk Financial Corporation
- Skyway Financial Group
- SL Finance
- Student Advisors
- Student Loan & Savings, aka CT Financial Services
- Student Loan Doc
- Student Loan Financial Assistance LLC, aka NextStep Financial Debt Settlement LLC
- Student Prep Center, aka Common Key
- Student Renew LLC
- Students Service Center
- Unified Document Services LLC
- United Students of America
- US Debt Relief
- U.S. Financial, aka Graduate Resource Network
- US Processing Solutions, aka TWZII, Inc.
- USA Student Debt Relief
The Office of the Minnesota Attorney General has released guidelines for Minnesotans to understand their rights when it comes to student loan repayment. These guidelines also tell borrowers what to look for when avoiding potential student-loan scammers, such as:
- Promises of immediate loan forgiveness or cancellation. Any changes to student loan repayment plans are made through official government loan servicers.
- Asking you to sign a power of attorney form.
- High up-front fees to apply to loan-repayment programs.
- Pressure to act immediately by installing a sense of urgency using phrases like “Call now!” and “Guaranteed results!”
- Statements about relationships with the government.
- Requests for a student’s Federal Student Aid username and password for services.
People who want to report fraudulent behavior or other experiences with student-loan debt-relief companies may contact Attorney General Ellison’s office by calling (651) 296-3353 (Metro area) or (800) 657-3787 (Greater Minnesota), by completing a Consumer Assistance Request Form online, or by writing the Office at 445 Minnesota St., Suite 1400, Saint Paul MN 55101.