Warning- SoFi- Social Finance Inc. – Student Loans
The FTC- Federal Trade Commission has reached agreement with student loan refinancer SoFi regarding misrepresenting how much student loan borrowers could save. Per the FTC, SoFi misrepresented its figures for more than two years.
In the FTC complaint, it said that online, SoFi claimed to save on average $22,359 on the life of the loan, approximately $292 per month.
SoFi also misrepresented how much student loan borrowers would pay versus other refinancing plans. The FTC’s complaint states that in the lifetime of the loan, borrowers were actually paying more.
SoFi’s settlement with the FTC prohibits misrepresenting to student loan borrowers how much they can save without reliable evidence. The FTC will also be notifying other lenders that are making similar claims.
Alexander Hernandez, Esq.
Per a district court ruling, Education Secretary Betsy Devos has to immediately implement the Borrower Protection Rule.
The Department of Education released data that shows how ineffective the student loan forgiveness program has been.
Attorney Generals from nineteen states plus the District of Columbia sued U.S. Secretary of Education Betsy DeVos and the U.S. Department of Education for failing to implement a borrower protection rule.
Alexander Hernandez has been representing clients since 1999 in the areas of bankruptcy, family law, and personal injury.
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