When it comes to student loan debt, millions of people are desperate for help. This type of debt is continuing to climb. It’s past the $1.53 trillion mark and rising. This number is at a crisis level. One of the biggest reasons why student loan debt keeps rising is because of fraudulent companies making false claims.
Here at Financial Helpers, we’ve covered Navient’s case currently being waged in court. They purposely misled borrowers to prevent them from obtaining student loan forgiveness. Now they’re being sued by several states. On the heels of that case now comes SoFi and their misdeeds.
SoFi is a financial services company. If you ever decide to refinance your student loans, they are one of the larger companies out there. But rather than being honest, SoFi has misrepresented themselves and made untrue claims. It’s all about taking advantage of the student loan debt crisis and students begging for help.
To learn more about student loan forgiveness and your options, call Financial Helpers today. We’d love to hear from you and discuss how you can overcome your debt. You can reach us at:
SoFi and Student Loan Debt Refinancing
SoFi’s case doesn’t seem to be criminal yet. They recently were cut by the Federal Trade Commission and agreed to stop being dishonest with consumers. According to the FTC, SoFi “made prominent false statements about loan refinancing savings in television, print, and Internet advertisements.”
A lot of students refinance their debt by rolling it into another loan. This allows them to pay a lower interest rate, especially after obtaining a better credit score. It’s one of the many options people with student loan debt have to overcome this major burden. So, SoFi decided to create false advertisements to lure in desperate students.
As reported by the FTC, SoFi made claims about exactly how much money they could save students if they refinance their loans with them. Not only were the advertisements false, but the numbers were also extremely exaggerated for effect. This wasn’t a simple math mistake either. It was a willful and deliberate attempt at suckering consumers.
False Advertising
SoFi’s claim was that people who used their services were, on average, saving $20,000. In reality, that wasn’t the case. They didn’t advertise student loan borrowers who ended up having to pay more money monthly, making their loans more expensive. As a form of settlement, SoFi has agreed to stop being deceptive in their ads.
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If they violate these terms again, there could be fines and penalties levied against them. “Student loan debt is a huge problem facing students and graduates across the country,” said FTC Chairman Joe Simons. “Lenders who offer refinancing options must be upfront with students about savings. They cannot make deceptive claims and bury the truth in fine print.”
SoFi tells a different story. They say that they’ve never misled borrowers, despite the fact that they agreed to stop doing it.
“We have always been committed to giving our current and prospective members clear and complete information with which to make smart financial choices, and are pleased to have this matter resolved,” said SoFi’s spokesperson in an email.
The one thing students need to know about their debt is they need to remain vigilant. When there’s a major crisis like this, there are always companies looking to take advantage. Don’t act out of desperation. Instead, educate yourself and fight back. Learn all your options. That’s the only way you’ll be able to overcome this crisis.
