The Federal Trade Commission (FTC) has intervened to halt a scheme that allegedly deceived financially vulnerable consumers seeking student loan relief, particularly targeting Spanish-speaking individuals in Puerto Rico. The scheme operators reportedly misrepresented themselves as being affiliated with the Department of Education and its loan servicers, making false promises of low, permanently fixed monthly payments and loan forgiveness.
A federal court has temporarily halted the operation and frozen its assets at the FTC's request. The agency aims to end these unlawful practices and secure redress for the thousands of affected consumers.
"By pretending to be affiliated with the Department of Education and misrepresenting features of its free income-driven loan repayment programs, these scammers bilked millions from the consumers these programs were designed to help," said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. "We are pleased that the court preliminarily shut down this predatory operation and froze its assets, and we will continue our efforts to crack down on junk fees, unwanted calls, and exploitation of consumers struggling with student loan debt."
According to the FTC’s complaint, since at least April 2019, Florida-based Start Connecting LLC and Colombia-based Start Connecting SAS (collectively doing business as USA Student Debt Relief or USASDR), along with their owners Douglas Goodman, Doris Gallon-Goodman, and Juan Rojas, falsely suggested an affiliation with government entities. They promised enrollment in programs guaranteeing permanent low monthly payments—as low as $9 per month—followed by significant loan forgiveness. In exchange for enrollment, they charged illegal advance fees amounting to several hundred dollars followed by monthly fees up to $29. Despite claims that these payments would be applied towards loan balances, USASDR allegedly pocketed this money and transferred much of it offshore to Colombia.
The complaint also accuses USASDR of using fake testimonials on its website and social media pages as well as third-party consumer review platforms like those hosted by the Better Business Bureau and Trustpilot. One testimonial posted on August 19, 2022, purportedly from “Ana Rojas,” falsely claimed that USASDR had reduced her loan payments significantly. According to the complaint, such reviews were fabricated using stock photos.
Additionally, USASDR telemarketers based in Colombia made unsolicited calls throughout the United States, including to numbers listed on the Do Not Call Registry. A substantial portion of these calls targeted Puerto Rican consumers who predominantly spoke Spanish. Contracts provided to Spanish-speaking consumers were often in English despite sales pitches being conducted in Spanish.
The FTC expressed gratitude for assistance from multiple organizations including the U.S. Department of Education and various state agencies.
The Commission unanimously voted 5-0 to authorize filing the complaint in the U.S. District Court for the Middle District of Florida. A temporary restraining order was issued on July 11, 2024.
NOTE: The Commission files a complaint when it believes that defendants are violating or about to violate the law if it deems legal action is in public interest. Stipulated final orders have legal force when signed by a District Court judge.
Lead staff attorneys Nathan Nash, D’Laney Gielow, and Karen Dodge handled this case within FTC’s Bureau of Consumer Protection.
The Federal Trade Commission works to promote competition and protect consumers. It does not demand money or make threats regarding money transfers or prizes. More information can be found at consumer.ftc.gov or ReportFraud.ftc.gov.
