Oh, the irony! Student Aid Center Inc., a company which garnered some negative attention for allegations of preying on desperate student loan borrowers, recently filed for bankruptcy. According to MarketWatch, the company claimed between $500,001 and $1 million in assets and between $1,000,001 and $10 million in estimated liabilities.
Student Aid Center Inc. is one of several student debt-relief firms that government regulators have accused of preying on the desperation of students in need of loans, by promising help that isn’t delivered on. The “help” these companies pedal comes in the form of access to government programs, but here’s the catch – they charge high fees for the programs which are actually free.
Another major issue people had with these companies was an implied affiliation with the Department of Education, which was established by incorporating its logo into social media and advertising. The Department of Education went as far as to send cease and desist letters to combat this practice, as it serves to lure borrowers in under false pretenses.
A History of Lawsuits
Months before filing, Student Aid Center Inc. was served with a lawsuit brought by Minnesota Attorney General Lori Swanson. Swanson brought claims that the company mislead and outright lied to its customers about what would happen to their student loans and how much their total loan amounts would drop. Swanson also alleges that the agency charged borrowers up to $1,500 for access to free government programs.
Swanson’s suit isn’t the first Student Aid Center Inc. has faced. Last year, a class-action lawsuit was filed against the company for its alleged practice of illegally robocalling consumers. It’s reasonable to assume that all of these accusations can be tied to a drop in clientele, leading to bankruptcy.
If you’re being targeted by companies like Student Aid Center Inc., it’s important to know your rights. Many have been fooled by companies like this one, and each is entitled to legal action. Contact the West Palm Beach student loan attorneys at Kelley & Fulton today to learn about your options.