Education loan servicer shuts down, grads left in standard

Education loan servicer shuts down, grads left in standard

Karen Morris will pay all her bills on time. Unfortuitously, which could not need assisted within the situation of her education loan.

The former university student recently received a letter through the FTC informing her that it is freezing the assets of her education loan servicing business, Mission Hills Federal of hillcrest.

«The Federal Trade Commission had been closing them down because they state it absolutely was a student-based loan scam,» she said.

The FTC claims Mission Hills took much more than $23 million from university grads like Morris, then again allegedly kept the amount of money and did not repay their figuratively speaking.

But that is perhaps not the worst component. Now the usa Department of Education informs her it shall just simply take her taxation return or garnish her wages to obtain the cash she owes.

«Now figuratively speaking wants to just take my taxation return,» she stated, «because we owe $2,000. Plus they are likely to simply just take my taxation return this 12 months.»

Warning signs and symptoms of a loan servicing scam

It is not a separated case.

Loan servicing scams and loan forgiveness frauds target lots and lots of pupils each year. But you can find how to protect your self from the loan company that is shady.

What exactly would be the warning signs your lender might not up be on the or over?

The warning signs and symptoms of a loan payment scam are:

  • Upfront costs to program your education loan
  • Claims of loan forgiveness (it’s very difficult to possess that loan completely forgiven)
  • The organization advertises on social media marketing
  • The organization includes a number that is high of in the event that you Google their name