Settlement obtained to shut down fraudulent student loan debt-settlement company
SAINT PAUL – Total Rain, Inc., doing business as Student Aid Group, is alleged to have falsely promised consumers student loan forgiveness. Minnesota Attorney General Keith Ellison alleges that the company enrolled consumers in federal repayment programs that consumers can enroll themselves in for free, then pocketed both initial and monthly fees for doing so.
The settlement, filed in Ramsey County District Court, requires Student Aid Group immediately pay the State $15,325, which is the full amount it has collected from Minnesota customers. The Attorney General's Office will use these funds to provide full restitution to consumers.
The settlement also requires Student Aid Group to cease operating in Minnesota unless and until it registers as a debt-settlement service provider.
"Minnesotans take out student loans in good faith so they can get educations that will help them better afford their lives," Attorney General Ellison said. "I encourage any Minnesotan who's been preyed upon by this company or others like it to contact my office so we can hold these bad actors accountable."
Student loan debt relief companies often charge consumers hundreds or thousands of dollars of illegal upfront fees, which they deceive consumers into believing go toward paying down their student loan debt. Often, the companies actually pocket the fees.
