Minnesota AG Sues Student Loan Company
ST. PAUL, Minn. (AP) — Minnesota's attorney general is accusing a Florida company of preying on students with promises of loan forgiveness.
Attorney General Lori Swanson alleges in a lawsuit filed Wednesday that Doral, Florida-based Student Aid Center Inc. has charged more than 800 Minnesota borrowers $500 to as much as $1,500 apiece to have their federal student loans "forgiven" when the company actually just enrolls them in a repayment or consolidation program.
Swanson says eligible borrowers can apply for the same repayment plans and consolidation loans themselves — free of charge — through the federal government. She says the company can't get student loans forgiven.
The lawsuit filed in Hennepin County seeks an injunction and restitution against the company.
Student Aid Center did not immediately respond to a request for comment.