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Feds, 11 States Crack Down on Student Loan Scams

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Federal and state officials have launched the first national crackdown on companies that they say gouge student loan borrowers, accusing them of taking more than $95 million in illegal fees in recent years and falsely promising debt relief.

The Federal Trade Commission, 11 states and the District of Columbia announced Friday they had filed 36 suits and other legal actions against companies accused of scamming student loan holders.

More actions are coming, authorities say. Prosecutors are targeting a growing number of companies that prey on desperate debtors among the 42 million Americans who’ve borrowed a total of more than $1.4 trillion. Officials in Washington state alone said they are investigating more than 50 companies suspected of...

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