Congressman’s bill would crack down on student debt relief scams

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HARRISBURG, Pa. (WHTM) – A congressman has introduced legislation to crack down on companies who prey on people with college debt.

U.S. Rep. Lloyd Smucker (R-Pennsylvania) said the companies offer solutions like loan forgiveness, but with a price. The services they provide are available from the federal government for free, but they don’t tell you that.

“Companies who are selling students a bill of goods, telling students if you pay us money, we can provide some of these services to you,” Smucker said.

The Stop Student Debt Relief Scams Act would make it a federal crime to access the services for commercial advantage.  

“There would be fines associated with that, even jail time up to five years,” Smucker said.

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