FTC Refunds $4.1 Million to Victims of Student Loan Scams

The action targets over 27,000 individuals defrauded by fake loan forgiveness programs.

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.