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Student loan settlement companies to be sued by Illinois AG

Student-loan settlement companies that allegedly take people’s money and do not provide the promised student-loan debt help will be sued by the Attorney General of Illinois, the New York Times reported.  Illinois will be the first state to take legal action against companies that advertise help for student loan debtors.

Two of these student loan debt assistance companies will be sued – Broadsword Student Advantage and First American Tax Defense – according to the Times reporters, who stated that they read advance copies of the Illinois Attorney General’s lawsuits.  They report that the lawsuit accuses these companies of taking fees about which student-loan debtors were misled and sometimes they faked affiliation with government student loan programs, or they lied about a fake program called the “Obama Forgiveness Program,” which does not exist.

Student-loan debt is a growing problem in this country, with more and more people concerned about their ability to pay off their debt within a reasonable period of time.  Just as debt settlement companies have preyed on people who have large amounts of credit-card debt, student loan settlement companies are now sprouting up all over the place to prey on people who carry large student-loan debt burdens.  They promise a variety of things that they cannot deliver and charge high fees while making false statements to debtors about their student loans.

If you need student loan debt help, it’s better to contact either the Department of Education directly (for Federal student loans) or a local attorney who can help you navigate the system.  For a New Jersey student loan lawyer, call me at (201) 676-0722.

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