Education loan servicer shuts down, grads left in standard

Karen Morris pays all her bills on time. Unfortuitously, which could not need aided within the full situation of her education loan.

The previous university student recently received a page through the FTC informing her that it is freezing the assets of her education loan servicing business, Mission Hills Federal of north park.

“The Federal Trade Commission had been closing them down because they state it had been an educatonal loan scam,” she stated.

The FTC claims Mission Hills took much more than $23 million from university grads like Morris, then again presumably kept the money and did not repay their student education loans.

But that is maybe maybe not the worst component. Now the usa Department of Education informs her it will just take her taxation return or garnish her wages to obtain the money she owes.

“Now figuratively speaking wants to simply take my taxation return,” she stated, “because we owe $2,000. Plus they are likely to simply take my income tax return this year.”

Warning signs of a loan servicing scam

This isn’t a separated case.

Loan servicing scams and loan forgiveness frauds target a huge number of pupils each year. But you will find approaches to protect your self from a shady lender.

Just what exactly will be the indicators your financial institution might not be regarding the up and up? Continue reading