Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office
214-733-1775
972-608-0335
903-813-4778

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Texas student loan borrowers may be scam victims

The attorney general of Illinois has sued five companies that it claims broke state law when it demanded upfront fees in exchange for assistance with student loan repayment problems. The companies named in the lawsuit reportedly asked for as much as $1,250 to provide services, and none of the amount paid went toward the borrower's student loan balances. One of the main goals of the lawsuit is to help victims regain their money.

However, there was no specific plan in place to help those effected get a refund. In almost all cases, borrowers should be able to get information about debt relief or student loans without having to pay for it. Additionally, borrowers in any state may be able to negotiate a flexible repayment plan with their loan providers. This is often true whether the loan is a private or a federal loan.

Such schemes have previously targeted those who are behind on their mortgages or credit card debt. As student loan debt grows and it becomes harder for many to stay current on their payments, those who have these types of obligations have become more vulnerable to less than ethical debt relief companies. A hotline and website have been setup in Illinois to help educate borrowers, but some of the information may be relevant to borrowers in Texas and other states.

Those who are looking for a fresh financial start may wish to consider filing for bankruptcy. Bankruptcy may allow for certain unsecured debts to be discharged, which means creditors can no longer pursue them. As soon as a petition is filed and approved, a stay may be granted by the judge and creditors cannot continue with any legal or collections efforts against the debtor. An attorney may provide more information about the eligibility and other requirements associated with a personal bankruptcy filing.

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
6060 North Central Expressway, Suite 602
Dallas, Texas 75206

Phone: 214-733-1775
Map & Directions