A company accused of scamming student loan borrowers is permanently shutting down because of a Federal Trade Commission investigation.
The agency says Panda Benefit Services tricked borrowers into paying hundreds of thousands of dollars in illegal fees for fake student loan forgiveness.
The scammers pretended to be affiliated with the Education Department, the FTC said.
In the end, the group swindled nearly $17 million from borrowers, according to the agency.
So, how can you protect yourself from similar cons?
Start by doing your research.
If you are looking to change your student loan servicer, make sure it is listed on the Education Department’s website. You can check at studentaid.gov.
Just click on the “Find my Servicer” tab.
This should pull up the organization’s contact information. If it does NOT match the info listed on the company’s website, you might be dealing with a scammer.
Also, don’t trust anyone who asks for your FSA login information. Never give that information out because scammers can use it to commit fraud.
If you spot a student loan scam, report it to the FTC at ReportFraud.ftc.gov.