FTC sends payments to people who paid for student loan debt relief
The FTC is sending Zelle payments to people who paid money to American Financial Benefits Center.
The FTC and the Department of Justice sued Brandon Frere, American Financial Benefits Center, and related companies in 2018, for operating a student loan debt relief scheme. According to the lawsuits, the defendants pretended to be affiliated with the U.S. Department of Education and charged up to $800 in illegal upfront fees and $45-$99 monthly fees. Frere was banned from providing debt relief services, sentenced to prison, and required to pay money to provide refunds.
The FTC first sent payments in August 2023, then a second round of payments in January 2025 which resulted in more than $8.9 million in refunds. Now, the FTC is sending Zelle payments to people who didn’t cash their check or accept their PayPal payment.
If you get a Zelle payment, the payment will be deposited directly into your bank account with a note about the settlement. The FTC never asks you to pay money to get a refund.
For information about the status of your student loan, please contact your loan servicer or the Department of Education at https://www.ed.gov or 1-800-USA-LEARN (872-5327).
You can find answers to common questions about FTC refund payments on our FAQ page. If you have any other questions, please call the refund administrator at 1-833-579-3126.