Summary: Outstanding student loan debt stands at $1.4 trillion. That makes promises to borrowers of easy-outs an attractive scam. Now in a first, the Federal Trade Commission has wrapped up a coordinated effort with officials in 11 states to crack down on deceptive practices like posing as a government agency and offering loan forgiveness in exchange for a fat fee. Michelle Grajales, an FTC staff attorney, coordinated 36 separate enforcement actions in Operation Game of Loans. She talked to Federal News Radios Jared Serbu on Federal Drive with Tom Temin about the crackdown, and what the scams have in common.
