The FTC's July 21 order resolves its case against the remaining operators of an alleged student loan debt relief scheme that took more than $45.9 million from consumers.
Key Takeaways
- The FTC announced on July 21, 2026 that Dennise Merdjanian will be banned from debt relief services and telemarketing under a proposed order.
- The agency said the alleged student loan debt forgiveness operation took more than $45.9 million from consumers.
- The FTC alleged the defendants pretended to be affiliated with the U.S. Department of Education and falsely promised student loan forgiveness.
- Borrowers can get federal student loan help for free through StudentAid.gov, and debt relief companies cannot legally charge advance fees for certain telemarketed debt relief services.
A new Federal Trade Commission order is a useful reminder for anyone under debt pressure: a promise of forgiveness is not the same thing as a real resolution plan.
On July 21, 2026, the FTC announced a proposed order against Dennise Merdjanian, one of the operators of an alleged student loan debt forgiveness scheme. The agency said she will be permanently banned from the debt relief industry and telemarketing. The order also imposes a monetary judgment of more than $45.9 million, partially suspended because of inability to pay unless financial disclosures were materially misrepresented.
What The FTC Says Happened
The FTC's case centered on Nevada-based Superior Servicing LLC and related defendants. In its public release, the agency said the operation pretended to be affiliated with the U.S. Department of Education and falsely promised student loan forgiveness to borrowers.
The Commission first sued Superior Servicing and Merdjanian in November 2024. A federal court temporarily halted the operation and froze assets at the FTC's request. In 2025, the FTC added other companies and two additional operators, Eric Caldwell and David Hernandez, as defendants.
Orders against Caldwell and Hernandez were entered in September 2025. According to the FTC, the new order against Merdjanian, together with a default order against the corporate defendants, resolves the remaining litigation in the case.
Why This Matters For Borrowers
Student loan borrowers can be especially vulnerable to debt relief claims because the official repayment system can feel complicated. A company that sounds official, uses government-like language, or claims special access to forgiveness can appear credible when a borrower is already stressed.
The first practical distinction is simple: federal student loan assistance is available for free through StudentAid.gov. A private company may offer document preparation, counseling, or other paid services, but it should not tell borrowers it has a special government relationship unless that is true, and it should not promise forgiveness that depends on government rules outside the company's control.
The second distinction is about fees. The FTC has long warned that the Telemarketing Sales Rule restricts advance fees for many debt relief services sold by phone. That matters beyond student loans. Anyone comparing debt relief services should ask when fees are charged, what work has actually been completed, and whether the company is making guarantees it cannot support.
How To Check A Student Loan Debt Relief Claim
A borrower does not have to become a legal expert to spot warning signs. Start with the source. If the claim is about a federal repayment plan, discharge, consolidation, or forgiveness program, verify it directly through StudentAid.gov or the loan servicer shown in the borrower's official account.
Then compare the company's language with what the government source says. Be careful with phrases like guaranteed forgiveness, immediate approval, official enrollment, limited-time debt cancellation, or exclusive access. Those phrases may be marketing language, not legal eligibility.
For other unsecured debts, the same habit helps. A legitimate debt settlement program should explain risks, timelines, account eligibility, fees, creditor participation, and alternatives. If a pitch only focuses on a lower payment or a large reduction, it may be leaving out the facts a consumer needs to make a good decision.
My Take
The important lesson is not that every private debt company is bad. The lesson is that debt relief becomes dangerous when the sales pitch gets ahead of the facts.
With federal student loans, borrowers should treat official government channels as the starting point. With credit cards, personal loans, medical bills, business debt, and tax debt, the right next step depends on the type of debt, the creditor, the budget, and the consumer's long-term goal.
That is why I like to see consumers compare options before they sign anything. Minimum payments, hardship plans, counseling, consolidation, settlement, tax resolution, and bankruptcy advice can each be appropriate in different situations. A careful review of debt consolidation options and settlement alternatives is very different from a one-size-fits-all promise of forgiveness.
What You Could Do Now
- Verify Federal Student Loan Help At The Source. Use StudentAid.gov or your official loan servicer before paying anyone for student loan assistance.
- Ask Whether The Company Claims Government Affiliation. If the answer sounds vague, request written proof and verify it independently.
- Check When Fees Are Charged. Be cautious if a company wants payment before any debt has actually been resolved or before a documented service has been delivered.
- Get Every Promise In Writing. The written agreement should match the sales call, including risks, cancellation terms, and what the company can and cannot control.
- Compare More Than One Option. Look at government programs, budgeting changes, creditor hardship options, counseling, consolidation, settlement, and legal advice where appropriate.
If a debt solution is legitimate, it should still make sense after you slow down, verify the source, and read the terms.
Primary Sources
- Federal Trade Commission press release, Student Loan Forgiveness Scammer Permanently Banned from Debt Relief Industry and Telemarketing, July 21, 2026
- Federal Trade Commission case page, Superior Servicing, LLC, FTC v.
- Federal Trade Commission consumer guidance on student loan debt relief scams
- Federal Student Aid, official U.S. Department of Education student aid site
This article is educational and is not legal, tax, credit, student loan, or financial advice. CuraDebt is a private company and is not affiliated with the FTC, the U.S. Department of Education, Federal Student Aid, StudentAid.gov, or any government agency. Eligibility and outcomes depend on the facts of each case.
