Ever get that sinking feeling you’ve been played?
That the people promising to “help” you were actually the ones tightening the trap? Yeah—welcome to the world of shady student loan debt relief.
The FTC just dropped a fresh batch of defendants into one of their biggest student loan scams in recent memory. And the story behind it is a masterclass in what not to trust when you’re looking for financial help.
Let me break it down—like I would for a friend over coffee. No BS. Just facts, emotion, and a little fire.
❗ The Setup: A Familiar Scam With a New Twist
You know the drill:
“Get your student loans forgiven!”
“Lower your payments TODAY!”
“Call now before it’s too late!”
But here’s the kicker—these promises weren’t coming from some fly-by-night call center overseas. According to the FTC, they were cooked up by American companies and a new batch of individual masterminds who allegedly helped orchestrate the whole thing.
The FTC originally sued back in 2023, but now they’ve named Jay Singh, Jiten Singh, and Aman Singh as additional defendants in the scheme.
And the allegations? Yikes.
⚠️ What They Allegedly Did (Buckle Up)
According to the FTC’s March 2025 press release (📎 Source):
- They posed as the U.S. Department of Education in ads, logos, and communications
- Charged illegal upfront fees (sometimes thousands) for help with federal programs that are actually free
- Lied about forgiveness approvals, monthly payments, and timelines
- Failed to actually deliver any meaningful debt relief for most people
Let that sink in. These folks weren’t just playing fast and loose with the truth—they allegedly built a business model around lying to people in pain.
And the damage? It’s not just about money. It’s about hope, trust, and the emotional toll of thinking you finally found a lifeline—only to get dragged deeper into the quicksand.
Amended Case Summary
FTC Sues Superior Servicing and Affiliates for Deceptive Student Loan Debt Relief Scheme
Case Information
- Filing Date: March 26, 2025
- Court: U.S. District Court, District of Nevada
- Plaintiff: Federal Trade Commission (FTC)
- Defendants:
- Superior Servicing LLC
- Sunrise Solutions USA LLC
- Alumni Advantage LLC
- Student Processing Center Group LLC
- SPCTWO LLC
- Accredit LLC
- Dennise Merdjanian (aka Dennise Correa), individually and as managing member
- Eric Caldwell, individually and as owner/officer/manager
- David Hernandez, individually and as owner/officer/manager
Allegations at a Glance
The FTC accuses the defendants of operating a deceptive student loan debt relief scheme that falsely promised reduced payments, loan forgiveness, and government affiliation. Consumers were misled into paying upfront fees and monthly charges, only to receive little or no meaningful service. The alleged scheme exploited public confusion surrounding the end of the federal student loan payment pause.
Key Allegations
- Defendants misrepresented affiliation with the U.S. Department of Education and federal loan servicers.
- Consumers were promised reduced payments, loan forgiveness, and enrollment in federal programs like the SAVE or PSLF plans.
- Defendants collected upfront fees up to $899 and monthly fees of $49 without providing legitimate relief.
- Mailers and calls falsely claimed government benefits and used deceptive urgency tactics.
- Consumers often ceased paying actual loan servicers based on defendants’ advice, worsening their financial situations.
- Contracts sent during calls obscured key disclaimers and pressured consumers into quick signatures.
Legal Claims
The FTC alleges violations of:
- ✅ Section 5(a) of the FTC Act (deceptive/unfair practices)
- ✅ Telemarketing Sales Rule (TSR) – advance fee collection and false representations
- ✅ Gramm-Leach-Bliley Act – obtaining customer financial data through deception
- ✅ FTC’s Impersonation Rule – misrepresenting government and business affiliations
Relief Sought
The FTC seeks:
- 💰 Permanent injunction to halt the scheme
- 💰 Monetary judgments, including restitution and contract rescission
- 💰 Appointment of a receiver and asset freeze
- 💰 Preliminary and permanent relief to protect consumers
The Bottom Line
The FTC aims to dismantle what it describes as a deceptive and illegal debt relief operation that took advantage of financially vulnerable student loan borrowers. Consumers are urged to be wary of companies requesting advance fees or claiming affiliation with the government for debt relief services.
Legal Disclaimer
All claims outlined in the complaint are allegations. The defendants are presumed innocent unless and until proven liable in court. Cases may be resolved through settlement, dismissal, or trial.
🧠 Let’s Talk About Why This Keeps Happening
This case isn’t unique. It’s part of a pattern.
Scammers target:
- People desperate for help
- Systems that are confusing and hard to navigate (student loans, anyone?)
- Programs that sound too good to be true—but are actually real (like Public Service Loan Forgiveness or Income-Driven Repayment plans)
Then they charge big bucks for “help” that often amounts to:
- Filling out a form you could’ve submitted yourself
- Ghosting you after they get paid
- Leaving you worse off than before
😤 Why This Matters Right Now
The student loan landscape is shifting.
Payments are back. Forgiveness rules are changing. People are scrambling for answers.
And that’s exactly when the predators strike.
They know you’re confused.
They know you’re scared.
They know you want relief yesterday.
But here’s the truth: You don’t have to pay a company for access to federal loan help. Not ever. Not once.
✅ What You Should Do Instead
If you’re drowning in student loan debt and not sure who to trust, start here:
- Visit StudentAid.gov – It’s the official site. Real info. Real programs. No BS.
- Never pay upfront fees for debt relief. It’s illegal for companies to charge you before they do anything.
- If it sounds too good to be true, it probably is. Especially if someone says they’re with the “Department of Education” and won’t let you hang up.
- Report scams to the FTC at ReportFraud.ftc.gov.
- Talk to someone you trust. I always recommend Damon Day—a real debt coach who actually knows his stuff. You can find him at DamonDay.com.
💡 Final Thought: Don’t Let Shame Keep You Stuck
Scammers feed on silence.
If you fell for something like this, you’re not dumb. You’re human. These people are professionals at manipulation.
But now that you know better, you can fight back—and help others avoid the same trap.
📌 All facts in this article have been AI verified against the official FTC press release.
🙋♀️ FAQ: What People Are Asking (And Googling)
Is it illegal for student loan companies to charge upfront fees?
Yes. Federal law prohibits collecting fees for student loan debt relief before delivering results.
How can I check if a debt relief company is legit?
Use this guide: The Ultimate Consumer Guide to Checking Out a Debt Relief Company.
Can I really apply for loan forgiveness myself?
Absolutely. Most programs are free to apply for through StudentAid.gov.
What if I already paid one of these companies?
File a complaint with the FTC and talk to a real debt coach to explore your next steps.
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Drop a comment below—have you ever been hit by a scam like this? Let’s talk about it.
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