Karen Morris will pay all her bills on time. Unfortuitously, which could not need assisted into the full instance of her education loan, WCPO reported.

The previous university student recently received a page through the FTC informing her that it’s freezing the assets of her education loan servicing business, Mission Hills Federal of north park.

“The Federal Trade Commission ended up being closing them down because they state it absolutely was a education loan scam,” she stated.

The FTC claims Mission Hills took much more than $23 million from college grads like Morris, however presumably kept the amount of money and didn’t repay their figuratively speaking.

But that is maybe perhaps not the part that is worst. Now, the usa Department of Education informs her it will simply just take her taxation return or garnish her wages to have the money she owes.

“Now figuratively speaking wants to just take my income tax return,” she stated, “because I owe $2,000. And they’re planning to simply take my tax return this 12 months.”

Warning signs of a loan servicing scam

This isn’t an separated case.

Loan servicing scams and loan forgiveness frauds target a large number of students every year, but there are ways to guard your self from the shady financial institution.

Therefore, exactly what are the warning signs that the financial institution might not be from the up and up?

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

• Upfront costs to program your education loan
• Claims of loan forgiveness (it’s very difficult to have that loan completely forgiven)
• The business advertises on social media marketing
• The organization possesses high range complaints if you Google their title

WCPO contacted the usa Department of Education to see if Morris could possibly get any loan relief since she’s got been having to pay her money each month.