We are used to hearing how the growing costs of higher education can negatively impact today’s young people. Many newly graduated individuals find it increasingly difficult to get on their feet with sometimes hundreds of thousands of dollars in loans. In an attempt to take control of their debilitating debt, today’s young people often seek the help of student aid debt consolidation companies. Most of the time, these companies are successful in helping students manage their debt. Occasionally, a company comes along making promises they can’t keep. According to a recent article, this is exactly what happened to a Florida-based company whose promises of financial freedom has left students struggling and the company seeking refuge under the chapter 7 bankruptcy law.
On the heels of a lawsuit, a Florida-based student aid center has filed for Chapter 7 bankruptcy. The Attorney General of Minnesota filed a lawsuit claiming that the company’s misleading promises of student loan debt reduction and elimination, prompted students to pay upfront fees for their services which were, in some cases, never delivered.
The student aid center reportedly advertised on social media sites claiming to have the ability to get student debt forgiven, reduced and in some cases eliminated. For many young people, these promises were never fulfilled, and their financial struggle continued.
While this company’s impossible promises have led it into bankruptcy, it likely has done more damage to the students that bought into it. Each year, thousands of newly graduated young people enter the workforce with an incredible amount of student debt. Although student loan debt is typically not discharged during bankruptcy, there are things that struggling students can do to alleviate some of the stress. Individuals facing financial struggle after graduation may benefit by speaking with an experienced attorney.