(WBJK) - Students duped by loan debt relief scams are in luck after officials announced Friday a new effort to curb the problem.
Calling it Operation Game of Loans, the Federal Trade Commission has teamed up with states to create a initiative to help the over 42 million people affected by student loan debt totaling $1.4 trillion.
The FTC says deceptive scams have taken more than $95 million in illegal upfront fees.
“Winter is coming for debt relief scams that prey on hardworking Americans struggling to pay back their student loans,” said Maureen K. Ohlhausen, FTC Acting Chairman. “The FTC is proud to work with state partners to protect consumers from these scams, help them learn how to spot a scam, and let them know where to go for legitimate help.”
Click here to see a list of cases where the FTC has taken legal action against scammers. The effort so far has included five new cases, a new judgment in favor of the FTC, and more.
Officials say you can avoid scams by remembering the following:
- Only scammers promise fast loan forgiveness
- Never pay a fee up front for help
- Scammers can fake a government seal
- Don't share your FSA ID with anyone
You can report scams at ftc.gov/complaint.