SEATTLE – The state Attorney General’s Office says several student loan debt adjustors in Washington that overcharged hundreds of students and collected illegal fees will refund the money.
The office on Thursday announced six loan adjustors agreed to pay back $162,000 to 346 students after being sued by the state.
The loan adjustment firms help students with paperwork needed to consolidate federal student loans. Attorney General Bob Ferguson in a statement said the firms “preyed on students who sought their help.”
Among other illegal activities, the companies charged up-front fees between four and 27 times the legal limit and also charged monthly fees higher than allowed, the release says. They have agreed to adhere to the law and be monitored in the future.
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