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Borrower Beware: Federal Student Loan Alliance LLC

Loans, Student Loans

This company is on the NerdWallet Student Loan Watch List. The list flags student-loan businesses and individuals hit by enforcement actions, court judgments or liens, or bad ratings from the Better Business Bureau. Learn more in Who Gets Listed. Have you dealt with this business, or encountered a suspicious student-loan company that NerdWallet public interest reporters should investigate? Let us know at watchlist@nerdwallet.com.

California suspended Federal Student Loan Alliance LLC in 2015 for failure to pay taxes, according to records from the state’s Franchise Tax Board.

That same year, a Massachusetts court ordered dissolution of the company, state records show.

The Illinois attorney general sued the company in 2015 as part of a state crackdown on student debt adjusters. The company’s practices violate state fraud, business and consumer laws, the complaint alleged.

Representatives for Federal Student Loan Alliance failed to appear in Illinois court to enter a defense, a state judge said in entering a judgment against the company. The judge found that the company engaged in unfair or deceptive acts or practices, according to the final judgment in Sangamon County Circuit Court.

Enforcement actions: The Illinois judge banned the company from practicing in the state, voided all contracts between the company and Illinois consumers, and ordered the company to repay $2,990 to four consumers.

What the company claims to provide: Document preparation services for consolidation of federal loans

Based: Tustin, California

Management: Jeff Leitman, member manager. Leitman died in 2015. The company was registered in Massachusetts and in California under the name FSLA LLC.

Sources: Sangamon County Circuit Court, Illinois attorney general; Massachusetts secretary of state; California secretary of state


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