The Federal Trade Commission (FTC) is warning borrowers to steer clear of student loan debt-relief scams, after shutting down a group of companies last month that allegedly charged millions in illegal fees and left customers worse off.
The warning, issued June 6, comes as part of a broader push by the FTC to raise awareness about deceptive debt-relief schemes targeting Americans with student loans.
In a recent enforcement action, the agency permanently banned California-based Panda Benefit Services and its affiliates from the debt-relief industry. The FTC said the companies posed as partners of the Department of Education and promised borrowers quick loan forgiveness in exchange for upfront payments….