Minn. sues student loan company

Published 10:13 am Thursday, July 2, 2015

ST. PAUL — Minnesota’s attorney general is accusing a Florida company of preying on students with promises of loan forgiveness.

Attorney General Lori Swanson alleged in a lawsuit filed Wednesday that Doral, Florida-based Student Aid Center Inc. has charged more than 800 Minnesota borrowers $500 to as much as $1,500 apiece to have their federal student loans “forgiven” when the company actually just enrolls them in a repayment or consolidation program.

Swanson said eligible borrowers can apply for the same repayment plans and consolidation loans themselves — free of charge — through the federal government. She said the company can’t get student loans forgiven.

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The lawsuit filed in Hennepin County seeks an injunction and restitution against the company.

Student Aid Center did not immediately respond to a request for comment.