LOUISVILLE, Ky. (WDRB) -- Kentucky's governor is issuing a warning for anyone who owes money on federal student loans.
Gov. Andy Beshear and the Kentucky Higher Education Assistance Authority (KHEAA) say some loan repayment companies scam students by charging them for services available for free — like document preparation — to lower their payments, according to a news release from the governor's office.
Beshear said borrowers should be skeptical of third-party companies that claim they offer services to help students qualify for a loan forgiveness program. They may ask for payment and personal information up front, and some companies may ask for monthly fees to monitor an account, promise immediate loan forgiveness or ask for a student's FSA ID password and a power of attorney.
According to the Federal Trade Commission (FTC), it is illegal for companies to charge upfront fees before providing services such as debt relief.
Copyright 2021 WDRB Media. All Rights Reserved.