Imagine paying your student loan payments for years and then you're told the money was never going toward paying off the loan.
The Federal Trade Commission claims the loan servicer Mission Hills Federal was doing just that.
The FTC says Mission Hills took in $23 million from college graduates, but didn't put the money into the loans, and now students are being told they owe the money.
The U.S. Department of Education will take their tax refunds or garnish their wages to get it.
But the department is also investigating whether some of that debt can be forgiven.
Mission Hills Federal did not return calls.
Loan servicing and loan forgiveness scams affect thousand of students year.
Warning signs include servicers that want up-front or monthly fees, promise fast loan forgiveness, or ask for your FSA ID password.
That should never happen.
Student Loan servicers should also be operating through the Department of Education.
Click here for a list if services on the Departments website.
Click here for more information on student loan scams.