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KHEAA warns of companies charging students for free services By Crystal Staley/Sebastian Kitchen Frankfort, KY - On Friday, Gov. Andy Beshear and the Kentucky Higher Education Assistance Authority (KHEAA) warned that if Kentucky students owe money on federal student loans, they should watch out for scamming loan repayment companies. The companies offering to help students lower their payments may be charging large fees for services available for free. "My administration will always put education first, and part of that means protecting Kentucky students, after they've graduated, from predatory companies trying to take advantage of them as they pay back the loans that helped them pursue their education goals," Gov. Beshear said. Some third-party companies claim to offer document preparation services and act as though they can help students qualify for a loan forgiveness program, but they may want upfront fees and personal and financial information. The Federal Trade Commission says it is illegal for companies to charge upfront fees before providing debt relief services. The Governor and KHEAA warn borrowers to be skeptical about companies that:
If a student doesn't know what his or her servicer is, that information can be found at https://studentaid.gov/h/manage-loans. If students believe they have been contacted by a scammer, they should report it to the Consumer Financial Protection Bureau at https://www.consumerfinance.gov/complaint and the Kentucky Attorney General's Office at https://ag.ky.gov/about/Office-Divisions/OCP/Pages/default.aspx. This story was posted on 2021-04-17 09:18:15
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