NEW YORK (Reuters) – New Yorks attorney general on Thursday sued 10 companies and two executives over their alleged roles in a scam to induce thousands of struggling borrowers into buying student loan debt relief services that they could have received for free.
Barbara Underwood, the attorney general, said defendants typically charged more than $1,000 for their services, often imposing usurious interest rates, after luring borrowers with false claims such as being affiliated with the government, or that their help was needed if borrowers wanted relief.
Underwood said about $1.34 trillion of federal student loan debt is outstanding, and that the defendants targeted many of the nearly 10 million borrowers who are late on their payments.
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Read the full article at: https://www.reuters.com/article/us-new-york-student-loans-lawsuit/new-york-lawsuit-targets-student-loan-debt-relief-fraud-idUSKCN1M02U2
