Business ProfileforStudent Loan Solutions LLC

The Washington State Attorney General's Office announced that the office has recovered more than $2 million from nearly three dozen debt adjusters who preyed on student borrowers. These entities engaged in unfair and deceptive practices, including unlawfully charging tens of thousands of dollars in excessive fees to thousands of Washingtonians.

Student loan debt adjustment firms offer to help students complete and submit paperwork to the U.S. Department of Education to consolidate their federal student loans. But information about repayment options and help consolidating federal student loans is available — for free — directly from the U.S. Department of Education. Borrowers can also contact the company to which they currently make payments for information about consolidation and repayment options like income-based repayment.

Under the Debt Adjustment Act, the maximum upfront fee a debt adjuster can legally charge is $25. The companies investigated by Ferguson’s office charged anywhere from several hundred to thousands in upfront fees. Borrowers were also charged monthly “monitoring” fees in excess of the legal limit and without a clear understanding that these fees would span the life of the loan. The law limits those monitoring fees to no more than 15% of the payment amount. For example, a person paying $300 a month may not be charged more than $45 per month in monitoring fees.

Other unlawful actions by these debt adjusters included:

    False claims of an affiliation with the federal Department of Education;

    Aggressive marketing of “student loan forgiveness” for ineligible loans;

    Claims of employing student loan “experts” when staff had no industry experience;

    And claims to expedite loan consolidation despite an inability to actually do so.

The restitution recovered so far from all the financial entities totals $2,004,205 for an average of $755 per consumer. The resolutions also include payment of $321,035 in attorneys’ fees to the Attorney General, which covers the costs of investigation.

Student Loan Solutions LLC is required to pay $5,500 in costs and fees and $10,682 in restitution

Consumers who suspect they were charged or paid fees in excess of what is allowed under the law are encouraged to submit a complaint to the Attorney General’s Office Consumer Protection Division.

LINK: https://www.atg.wa.gov/news/news-releases/ag-ferguson-announces-more-2-million-recoveries-student-borrowers