The Federal Trade Commission is reminding student loan borrowers how to avoid debt relief scams, after news of a court-issued orders banning Nevada-based operators from engaging in the debt relief industry.
In a July 21 press release, the FTC said that Dennise Merdjanian, an operator of a student loan debt forgiveness scheme, will be permanently banned from the debt relief industry and telemarketing. She also faces a monetary judgement of more than $45.9 million, which was partially suspended due to her inability to pay.
In 2024, the FTC sued Nevada-based Superior Servicing LLC and Merdjanian alleging they pretended to be affiliated with the Department of Education and falsely promised student loan forgiveness, which bilked millions from borrowers.
The FTC filed an amended complaint adding several other companies and two scheme operators, which included Eric Caldwell and David Hernandez, who have also been banned from engaging in the debt relief industry.
Among the tips offered on its website, the FTC advises borrowers to:
- Never pay an upfront fee for student loan help,
- Don’t believe promises of quick loan forgiveness.
- Don’t trust seals or official-looking documents.
- Don’t share your FSA ID.
The FTC provides resources on how to avoid student loan debt relief scams at ftc.gov/StudentLoans. Consumers can get assistance with their student loans for free at StudentAid.gov.
