Sorrell, Welch warn: Avoid student loan scams
MONTPELIER (AP) - The Vermont Student Assistance Corp., Congressman Peter Welch and Attorney General William Sorrell are warning about offers from financial companies that promise student loan "relief."
They say state and federal authorities are raising concerns over companies that promise to help student-loan borrowers ease their financial burden but charge hefty fees for unnecessary services.
They add that many of the companies try to lure borrowers with promises of having student loans forgiven or helping to repair bad credit. These tactics can cost borrowers more money in the long run and jeopardize borrowers' long-term credit history.
Welch and Sorrell are expected to offer tips on avoiding student debt relief fraud at a news conference planned for Friday at Montpelier's Kellogg-Hubbard Library.
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