Overview

• The FTC is issuing $4.1 million in refunds to 27,584 victims of student loan forgiveness scams.
• The scams involved fake loan forgiveness programs that charged victims illegal upfront fees.
• Victims were misled into making payments directly to the scammers, believing their student loan payments were being lowered.
• The crackdown is part of broader efforts by the Biden administration to address fraudulent practices in the student loan industry.
• The scammers operated under various names, including Mission Hills Federal and Federal Direct Group.