Avoid Student Loan Scams - How Enforcement Actions Help Borrowers
In this special episode of Making Cents of Money, IDFPR Deputy General Counsel Greg Jones joins Andrea and Kimber to break down the warning signs of student loan scams and explain how enforcement actions by the Department help protect borrowers.
IDFPR recently released a press release detailing enforcement actions that have been taken to protect borrowers in the wake of sweeping student loan changes at the federal level. This episode was released to accompany that news with education that can help borrowers protect themselves from student loan scams.
Please note: Under the Debt Settlement Consumer Protection Act, entities providing debt settlement services in Illinois generally must be licensed by IDFPR, subject to certain statutory exemptions, including for attorneys, banks, and institutions of higher education, among others.
You can also listen to this episode on Apple Podcasts and Spotify.
Prior Related Episodes:
Resources for checking licenses and reporting scams
Other References
- Consumer Finance Monitor. (2022, July 27). Illinois provides guides and templates for Know Before You Owe Private Education Loan Act reporting requirements. Ballard Spahr LLP. https://www.consumerfinancemonitor.com/2022/07/27/illinois-provides-guides-and-templates-for-know-before-you-owe-private-education-loan-act-reporting-requirements/
- Debt Settlement Consumer Protection Act, 225 Ill. Comp. Stat. 429 (2010). https://www.ilga.gov/Legislation/ILCS/Articles?ActID=3276&ChapterID=24&Print=True
- Federal Student Aid. (n.d.). How to avoid student loan forgiveness scams. U.S. Department of Education. https://studentaid.gov/articles/avoid-student-loan-forgiveness-scams/
- Federal Trade Commission. (2023, June 14). FTC sends more than $3.3 million to consumers harmed by student loan debt relief scam [Press release]. https://www.ftc.gov/news-events/news/press-releases/2023/06/ftc-sends-more-33-million-consumers-harmed-student-loan-debt-relief-scam
- Illinois Administrative Code, tit. 38, § 145.5 (2023). Purpose and definitions, Debt Settlement Consumer Protection Act rules. https://www.law.cornell.edu/regulations/illinois/IL-Admin-Code-38-145-5
- Illinois Attorney General's Office. (2026). Student lending. https://www.illinoisattorneygeneral.gov/consumer-protection/student-loan-debt-assistance/
- Illinois Department of Financial and Professional Regulation. (n.d.-a). Student loan servicers. https://idfpr.illinois.gov/banks/student-loan-servicers.html
- Illinois Department of Financial and Professional Regulation. (n.d.-b). Consumer credit. https://idfpr.illinois.gov/dfi/ccd/ccd-main.html
- Know Before You Owe Private Education Loan Act, 110 Ill. Comp. Stat. 983 (2021). https://www.ilga.gov/Legislation/ILCS/Articles?ActID=4211&ChapAct=110%A0ILCS%A0983/&ChapterID=18&ChapterName=HIGHER%20EDUCATION&ActName=Know%20Before%20You%20Owe%20Private%20Education%20Loan%20Act.
- Manatt, Phelps & Phillips, LLP. (2021, August 26). Student lending: Illinois enacts 'Know Before You Owe' law. https://www.manatt.com/insights/newsletters/financial-services-law/student-lending-illinois-enacts-know-before-you-o
- Young, J. R. (2026, April 30). Fake student loan debt offers proliferate as federal government rolls back enforcement. The Hechinger Report. https://hechingerreport.org/fake-student-loan-debt-offers-proliferate-as-federal-government-rolls-back-enforcement/
