For some college graduates, the high cost of tuition and associated expenses will come as a shock once those student loan bills start to roll in. Faced with the need to cover living expenses while working at an entry-level position, many will turn to credit cards to cover costs. Before long, a serious debt situation can arise, and the need for debt relief can become acute. Unfortunately, there are numerous companies in Tennessee and elsewhere that exist to prey upon that need.
One such company is currently facing charges after the Federal Trade Commission shut down its operations. The company, known as Strategic Student Solutions, promised to assist borrowers with reducing or eliminating their student loan obligations. Of course, in order to reap those benefits, consumers were asked to pay upfront fees. As many might guess, there were few benefits to be had from the company.
In fact, many borrowers walked away from the experience with even higher levels of student loan debt than when they started. According to federal investigators, the owner of the company spent those upfront payments and monthly fees on luxury vehicles, vacations and casino tabs. There is no word on whether he was associated with other financial scams in the past.
The FTC is unsure just how many borrowers were swept up in this scam, but complaints filed with the Better Business Bureau number at 194. While this company will no longer be scamming borrowers out of their hard-earned dollars, there are hundreds of other scams out there just waiting to catch a new batch of graduates. For those in Tennessee who are concerned about how to manage all of their financial obligations, consulting with a bankruptcy attorney may provide clarity as to the available debt relief options.
Source: ksdk.com, “Feds halt alleged student loan debt relief scam“, Kevin McCoy, May 25, 2017