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Senate Democrats Call for Investigation of Student-Debt-Relief Companies

A group of 23 Senate Democrats on Thursday called on federal officials to investigate private “debt relief” companies, after a recent study found that some of those groups charged student-loan borrowers fees for free federal services.

Sen. Barbara Boxer of California and Sen. Tom Harkin of Iowa led their colleagues in writing a letter to the heads of the U.S. Department of Education, the Consumer Financial Protection Bureau, and the Federal Trade Commission. The letter states that the senators were “deeply concerned” by the findings of a report on the study, released last month by the National Consumer Law Center. The report also says many of the companies are not straightforward with potential customers.

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