Biden's Failed Loan Forgiveness Fuels More Scams!

The Federal Trade Commission just dropped a bombshell, naming five more companies and two individuals in its relentless pursuit of a Nevada-based student loan debt relief scam. This isn’t some petty fraud; it’s a calculated heist targeting desperate Americans drowning in student debt. Superior Servicing, led by Dennise Merdjanian, allegedly posed as a U.S. Department of Education affiliate, promising loan forgiveness that never materialized. Instead, they pocketed millions in illegal fees, leaving borrowers worse off than before. Now, with Sunrise Solutions USA LLC, Alumni Advantage LLC, and others dragged into the spotlight, the FTC is sending a clear message: predatory scams won’t be tolerated.

This case hits hard because it’s personal. Over 22 million borrowers resumed payments in 2023 after a COVID-19 forbearance lifeline ended, and scammers saw an opening. They exploited confusion over legitimate programs, like the Biden administration’s now-defunct forgiveness plan, to prey on the vulnerable. The FTC’s latest move, filed in Nevada’s U.S. District Court on March 28, 2025, builds on a November 2024 complaint that already froze the scheme’s assets. It’s a full-throated defense of hardworking Americans against corporate grifters who thrive on deception.

Here’s how it worked. Superior Servicing and its web of shell companies, including newcomers like Student Processing Center Group LLC and Accredit LLC, dangled the carrot of debt erasure. Borrowers, many struggling with the $1.7 trillion student loan crisis, forked over hundreds in upfront payments, illegal under federal law, for services that never came. Eric Caldwell and David Hernandez, the newly named accomplices, allegedly helped orchestrate this maze of shifting entities designed to dodge accountability. The FTC says these fraudsters delivered nothing but empty promises, often pushing victims deeper into financial ruin.

This isn’t a one-off. Historical crackdowns, like the FTC’s 2017 'Operation Game of Loans,' exposed similar tactics, nailing companies that raked in $95 million by exploiting borrower desperation. Today’s scammers have upped the ante, using complex corporate structures to hide their tracks. Over 15,000 companies worldwide were flagged in 2023 for circular ownership schemes tied to financial crimes. These aren’t just shady businesses; they’re sophisticated predators gaming the system while regulators play catch-up.

Some argue more federal oversight or bloated relief programs could stop this. Wrong. The Biden administration’s failed forgiveness push only fueled the chaos, giving scammers a playbook to mimic with fake 'Biden Loan Forgiveness' schemes. Between 2023 and 2024, fraudsters swindled $20 million from Spanish-speaking borrowers alone, proving big government promises just breed more scams. The FTC’s 2024 haul of $63 million in consumer refunds shows enforcement, not handouts, gets results. Free markets thrive on accountability, not bureaucratic quick fixes that invite abuse.

Contrast that with the FTC’s approach: swift, decisive action. Last year, it banned operators from the industry and seized assets from outfits like Apex Processing Center. This isn’t about coddling borrowers; it’s about punishing bad actors. Advocates for endless regulation miss the point—overreach creates the confusion scammers exploit. Borrowers don’t need more red tape; they need fraudsters locked out of the game for good.

The human toll is staggering. Borrowers, already crushed by debt, handed over cash to imposters posing as government saviors. Some stopped paying legitimate servicers on bad advice, tanking their credit. The FTC’s case against Superior Servicing echoes past horrors, like the Student Debt Doctor LLC scam, where millions vanished into thin air. Younger folks, Gen Z and millennials, get hit hardest, hooked by slick online pitches. With phishing scams spiking, personal data theft adds insult to injury.

Education’s part of the fix, sure. The FTC and Consumer Financial Protection Bureau push hard to teach borrowers the red flags: upfront fees, fake urgency, unsolicited calls. Legit relief, like Public Service Loan Forgiveness, comes free through StudentAid.gov, no middleman required. But awareness alone won’t cut it. Scammers adapt faster than campaigns can print flyers. That’s why the FTC’s hammer matters—nailing these crooks with permanent bans and asset freezes is the only language they understand.

The FTC’s 4-0 vote to expand this case proves they’re not messing around. Filing in Nevada, where Superior Servicing set up shop, they’re hitting the snake at its head. This isn’t just about refunds; it’s about deterrence. Every frozen account, every banned operator, sends a signal: prey on Americans, and you’ll pay. The $10 million Superior Servicing allegedly snatched pales next to the $1.7 trillion debt crisis, but every victory chips away at the scam economy.

This fight’s bigger than one case. It’s a stand for free markets and personal responsibility against those who twist both for profit. The FTC’s on the right track—aggressive enforcement over empty promises. Borrowers deserve protection, not pity, and justice, not jargon. As student debt looms large, the real solution lies in crushing these scams at the root, not papering over them with more government fluff. That’s a win worth celebrating.