Did you attend DeVry? Don t pay for loan forgiveness

Did you attend DeVry? Don’t pay for loan forgiveness by Amy Hebert Consumer Education Specialist, FTC Are you a former student of DeVry University — or of any other college — who’s heard from a company that’s promising to get your loans forgiven after you pay them a fee? We have an important piece of advice: don’t do it. It’s never a good idea to pay an up-front fee for the promise of debt relief. Once you pay, you might not get anything in return. And you might be paying for something you can do yourself for free.

The FTC has been hearing about pitches like these after recently filing a complaint in federal court against DeVry, one of the largest educational services companies in the nation, for misrepresenting the prospects of their graduates to get well-paid jobs in their fields.

So what can you do if you think you might be a candidate for loan forgiveness or are looking for other help with your student loans?

If you’ve got federal loans, go to the Department of Education’s StudentAid.gov to find out more about applying for forgiveness and cancellation, or other programs like income-driven repayment plans. Information about one kind of loan forgiveness, known as a borrower defense discharge, is available here.  Applying for any of these programs is free.

If you’ve got private loans, try contacting your loan servicer directly to see what options you might have.

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FTC Action: Scammer Banned from Debt and Mortgage Relief Business, Telemarketing Denny Lake, the final individual defendant in a mortgage modification scam aimed at financially strapped homeowners, will be banned from selling debt relief and mortgage-related products and services, and from telemarketing under a court order obtained by the Federal Trade Commission. The court’s order granting the FTC’s request for summary judgment against Lake on all counts resolves an FTC action brought in April 2015, when the court halted the HOPE Services and HAMP Services scheme that promised consumers help getting their mortgages modified, but instead stole their mortgage payments, leading some to foreclosure and bankruptcy. The court found that Lake, doing business as JD United, Advocacy Department, Advocacy Division, and Advocacy Agency, substantially assisted HOPE Services and HAMP Services, while knowing or consciously avoiding knowing the other defendants were violating the FTC’s Mortgage Assistance Relief Services Rule and its Telemarketing Sales Rule. The court wrote, “Fraud was the HOPE Defendants’ business model, and Lake knew it. Nonetheless he continued contracting with them, continued to assist them in procuring payments from clients, and continued to refuse to inform customers about the location of their trial payments.” The court found that “no reasonable jury could conclude that Lake did not substantially assist the HOPE Defendants in carrying out their scheme.” In addition to the banned activities, the order announced today prohibits Lake from making misrepresentations about any products or services, including financial products in particular, and from making unsubstantiated claims about any financial product unless they are non-misleading and based on reliable evidence. He also is barred from profiting from consumers’ personal information and failing to dispose of it properly. The order imposes a judgment of more than $2 million, which represents the amount of bogus mortgage payments consumers paid. The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources. Contact Information MEDIA CONTACT: Frank Dorman Office of Public Affairs 202-326-2674 STAFF CONTACT: Miriam Lederer Bureau of Consumer Protection 202-326-2975 Related Case FTC v. Lake, et al. (HouseHoldRelief) For Consumers Shopping for a Mortgage Deceptive Mortgage Ads For Businesses Real Estate and Mortgages