AUSTIN, Texas (CBSDFW.COM) – College students are drowning in uncertainty right now, but COVID-19 may not be their only concern.
While they question if they will return to class in the fall, they may also be asking how will they pay for it.
Texas Attorney General Ken Paxton is warning college students to beware of loan debt relief companies.
On its website, the company states its experts provide federal loan forgiveness advice and “offer real solutions to your student loan stress.”
In the lawsuit, the AG claims the company failed to make timely payments for students, exaggerated savings claims and charged consumers unfair monthly fees.
The lawsuit follows an investigation by the Better Business Bureau after it received consumer complaints.
While it has an “F” rating on the BBB’s website, My Education Solutions touts its nearly five-star Google rating on its site.
Statement from My Education Solutions President & CEO Christina Randell:
“As Student Loan Forgiveness Experts, My Education Solutions provides customers with counseling, enrollment, and administrative services to help them navigate the complex process of student loan forgiveness. The work we do is best reflected in our many satisfied customers and our 4.9 out of 5 star rating on Google.
Having pioneered its industry, My Education Solutions is not a loan servicer and continues to work in coordination with the appropriate governing bodies to clarify its services and compliance with all applicable regulations. As a customer-centric organization, our current focus is helping our clients maintain their student loan forgiveness eligibility throughout the evolving challenges of the global pandemic. We dispute and disagree with the allegations set forth by the Attorney General and will continue to vigorously defend against the baseless claims asserted in this lawsuit.”
Tips about debt relief and debt consolidation companies:
–Never pay an upfront fee.
–Do not fall for a guarantee to make your debt disappear.
–Be wary of companies that claim to have special access to sites-such as the Department of Education- by using official looking logos and seals. They do not.
–Do not give away pins or codes to your accounts- such as your Federal Student Aid pin.
–Be cautious about demands to sign a “third party authorization” giving a company written permission to talk directly to a loan service on your behalf.
The Better Business Bureau says you or your student loan debt provider can perform the same services as a debt relief company.