Student loan servicer shuts down, grads left in default

Student loan servicer shuts down, grads left in default

Karen Morris will pay all her bills on time. Unfortuitously, that could n’t have assisted within the situation of her education loan, WCPO reported.

The college that is former recently received a page from 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 it was a student loan scam,” she said because they say.

The FTC claims Mission Hills took much more than $23 million from college grads like Morris, then again presumably kept the cash and neglected to repay their student loans.

But that’s maybe maybe not the part that is worst. Now, the usa Department of Education informs her it shall just take her taxation return or garnish her wages to obtain the cash she owes.

“Now student education loans wants to just just take my income tax return,” she stated, “because we owe $2,000. Plus they are planning to simply take my income tax return this 12 months.”

Warning signs and symptoms of that loan servicing scam

This is simply not an isolated case.

Loan servicing scams and loan forgiveness scams target several thousand students on a yearly basis, but there are methods to safeguard your self from the loan company that is shady.

Therefore, do you know the indicators that the financial institution may well not up be on the and up?

Nerdwallet.com claims indicators of that loan payment scam are: