Illinois' attorney general has filed lawsuits against five companies and is accusing them of scamming people who need to repay student loan debt.
Attorney General Lisa Madigan filed the lawsuits Monday. She says the scammers charge borrowers costly upfront fees with the false promise that their debt will be forgiven or decreased.
"What we see consistently is that there is a very large, upfront payment that is required. Usually about $600, but we've seen as much as $1,250 for an upfront payment. When the payments are on the lower end, the lower end being $500-$600, there's usually a $30-$50 monthly charge that is incurred every single time."
Madigan also says the scammers will charge for options that are already available to borrowers for free.
Madigan says the companies - based in Illinois, California, Florida, Georgia and Texas - violate an Illinois law that bans charging upfront fees for debt settlement services.
The Illinois attorney general's office also has a helpline for borrowers with student loans. It's available at 1-800-455-2456.
