student loan borrower

Student-loan borrowers became disheartened after knowing that their payments were illegally pocketed by the Arete Financial Group.

Student loan scams
Student-loan borrowers are scammed after a company pockets their payments. (Photo: Money)

Illegal Pocket Money From Student-Loan Borrowers

According to a top consumer watchdog, a company named Arete Financial Group has scammed student-loan borrowers and has pocketed the money they got from payments. The financial group allegedly told and promised the consumers that after they pay their upfront fees and monthly payments, they would help reduce or even eliminate the burden of their debts since they are said to be a debt-relief company. The said company also pretended to be affiliated with the Education Department.

According to a published article in Yahoo! News, it was in 2019 when the first accusations surfaced which accused Arete and other several companies of scamming borrowers in which the Arete Financial Group could not be reached for a statement. Borrowers that are involved in this predicament will be receiving their checks through the mail which can be cashed and claimed within the course of 90 days from the refund administrator.

READ ALSO: Student Loan Repayment: What Happens At The End Of August?

Student Loan Repayment: What Happens At The End Of August?

At the start of the pandemic, the interest for student loans was stopped for the meantime in order to help the negative financial effect of the pandemic. But students are encouraged to be ready to pay their loans since the accruement will be resumed on the first of September.

READ ALSO: Bank Of America Warns About The Effect Of Student Loan Repayments