Student loan | <b>Student Loan</b> Debt: Another Great American Scam <b>...</b> - ETF Daily News |
- <b>Student Loan</b> Debt: Another Great American Scam <b>...</b> - ETF Daily News
- Illinois Suing <b>Student Loan</b> Settlement Companies | The Daily Caller
- Illinois AG sues, alleging <b>student loan</b> debt scams - Education Week
| <b>Student Loan</b> Debt: Another Great American Scam <b>...</b> - ETF Daily News Posted: 17 Jul 2014 08:32 AM PDT
I'm not talking about the rich getting scammed. They get what they pay for. They can afford to be scammed, and they don't wind up saddled with student loan debt after they graduate. A lot of rich people send their kids to expensive private colleges hoping they'll get a good education that will lead them into their chosen careers. If they haven't chosen a career, rich parents are more than happy to give their kids the "experience" of college, with all its social aspects, country club accommodations, and alumni status. Have you ever wondered how billionaires continue to get RICHER, while the rest of the world is struggling?"I study billionaires for a living. To be more specific, I study how these investors generate such huge and consistent profits in the stock markets -- year-in and year-out." CLICK HERE to get your Free E-Book, "The Little Black Book Of Billionaires Secrets" But then there are kids who want a higher education because they believe a college education is their ticket to gainful employment and well-compensated careers. They pay for it themselves, or their hardworking parents cosign on loans or take out personal loans on behalf of their kids' college dreams. For them, higher education is increasingly looking like a scam. Some critics complain that this is students' own fault, that they're pursuing the wrong majors. Or they say that colleges themselves are lacking, that they're not teaching what kids need to know in our ever-changing economy. However, my problem isn't with education or kids' choices. Today I'm telling you where my beefs are – and why they're costing today's kids and their parents billions… My First Beef: Astronomical Student Loan Debt My first beef is with the come-ons that lure kids and their parents who can't afford college into indentured servitude.
Maybe if kids were guaranteed jobs that allowed them to pay off their loans, those crazy costs might be justifiable. But there's no guarantee on jobs, and so those costs aren't justified. Half of all kids who recently graduated colleges and universities are unemployed. Outstanding U.S. student loan debt now exceeds $1.2 trillion. Students are saddled with an average of more than $21,000 in debts. This takes into account both those who got out relatively early without a degree and graduates who can owe $100,000 and more – well into their 50s.  |
| Illinois Suing <b>Student Loan</b> Settlement Companies | The Daily Caller Posted: 15 Jul 2014 10:58 AM PDT
Illinois Attorney General Lisa Madigan has launched lawsuits against two debt-settlement firms she says engage in predatory practices and scam people trying to get control of their student loan payments. The lawsuits are the first ever launched by a state against firms that specialize in assisting with student loan repayment. The targeted firms are First American Tax Defense LLC of Park Ridge, Illinois, and Broadsword Student Advantage LLC, based in Frisco, Texas. Madigan's lawsuits accuse the two companies of violating anti-fraud laws, and say the companies do little more than apply for free federal programs that borrowers could access on their own at no cost. For this service, they charge as much as $1199 up front, and in Broadsword's case may also charge a monthly fee of fifty dollars. "Employing high-pressure sales tactics, Defendants target financially vulnerable consumers with student loan debt in Illinois, and throughout the United States," reads the case against First American Tax Defense. "Despite wide-ranging student loan relief services, such as the ability to secure lower student loan payments, remove wage garnishments, negotiate student loan debt forgiveness, and improve credit scores, Defendants do not have such capabilities." The company is also accused of offering to help navigate a new program "just approved" by Congress called the "Obama Forgiveness Program," which does not currently exist. The suit also claims that while First American represents itself as "a dedicated group of attorneys," the company in fact only employs a single licensed attorney, who rarely if ever interacts with customers. Broadsword, meanwhile, is accused of having sales representatives tell consumers that they could eliminate all their student loan debt by paying a few hundred dollars up-front and then a $50 monthly fee for ten years, when there was no basis for such an offer. Instead, monthly fees were allegedly redirected into an investment advisory firm called Affordable Life Plans, allegedly for financial planning services customers did not know they were signing up for. The lawsuits seek to have the companies' contracts canceled and fines in excess of $10,000 for each discovered violation of Illinois law. The volume of student loans has risen enormously in the past decade, recently passing $1 trillion and beating out credit card debt as Americans' second largest source of debt behind home loans. Thanks in part to rising college tuition and a laggardly economy, about seven million people have defaulted on their student loans, and the number is rising. Unlike other debts, student loans cannot be discharged in bankruptcy except for particularly severe circumstances, meaning their burden can be particularly oppressive for those struggling to pay. With so much money at stake and so many people falling behind on loans, scams have the opportunity to flourish. According to the Federal Trade Commission, complaints about abusive business practices by credit-services firms numbers in the hundreds of thousands every year, and several such companies, have been sued by the FTC itself. Madigan's lawsuits, however, appear to represent the first effort by a state to specifically reign in abuses related to student loans. Representatives for the two accused companies could not be reached immediately for comment. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@ dailycallernewsfoundation.org. |
| Illinois AG sues, alleging <b>student loan</b> debt scams - Education Week Posted: 13 Jul 2014 09:07 PM PDT Published Online: July 14, 2014 CHICAGO (AP) — Illinois Attorney General Lisa Madigan filed lawsuits Monday against two companies she says are scamming people who are paying student loan debts. The lawsuits, filed in Cook and Champaign counties, alleged "deceptive practices" for charging up-front fees for phony services or for services that are already free. The companies' advertisements on radio, online and signs affixed to lamp posts and fences offered student loan forgiveness or lowered payments, Madigan said. "All of the alleged services that these operators provide, you can access yourself at no cost because they are free programs offered by the U.S. government," she said a Chicago news conference. "Too often, students do not know what options they have to repay or reduce their loan payments." She said her office received dozens of complaints about Chicago-based First American Tax Defense LLC and Texas-based Broadsword Student Advantage LLC, and says there are likely many more people affected. Messages left at both companies Monday weren't immediately returned. The companies allegedly charged people up to $1,200 up front for sham services. In one instance detailed in the lawsuits, First American allegedly advertised for an "Obama forgiveness program" that Madigan said isn't a government program. Broadsword circulated ads targeting professionals who are paying off loan debt, including teachers, nurses, government employees and firefighters, according to audio of the company's radio ads provided by Madigan's office. The lawsuits alleged that the companies violate Illinois laws, including a 2010 act that bans companies from charging upfront fees for help with debt relief. Student loan debt affects nearly 40 million Americans who have $1.2 trillion in outstanding debt, according to Madigan's office. In Illinois, student loan borrowers owe roughly $26,000 on average, according to Illinois Public Interest Research Group. Madigan said her office will be aggressively targeting other companies that allegedly do the same. Previously, her office has sued for-profit colleges for "deceptive practices" that left numerous students with debt for degrees that failed to qualify them for certain types of jobs. ——— Follow Sophia Tareen at http://twitter.com/sophiatareen. |
Personally, I don't get what costs $10,000 a year (which is cheap these days) or $25,000 a year. And I especially don't get what costs $50,000 and higher a year.
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