CHICAGO – As Illinois borrowers prepare for a new school year and as student loan payments and tuition bills come due, the Illinois Department of Financial and Professional Regulation (IDFPR) is taking action to protect consumers and remind the public to be cautious of companies that offer to consolidate, pay off or reduce student loans, or enroll borrowers in lower-cost repayment plans.
IDFPR has taken enforcement action against two companies allegedly providing unlicensed student loan debt relief services in Illinois in violation of the Debt Settlement Consumer Protection Act (DSCPA). On August 31, 2026, IDFPR entered a consent order with Consulting Cafe, LLC DBA Smartfile Services, under which the company is prohibited from engaging in student loan debt relief services in Illinois and is required to provide full restitution of $47,929.44 to affected Illinois consumers. The company is also required to pay a $50,000 penalty to IDFPR.
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On September 10, 2026, IDFPR issued a Cease and Desist Order, Order of Restitution, and Order of Fine against Capital Core Advisors, LLC for unlicensed conduct and other violations of the DSCPA. Enforcement of that Order will be stayed if a hearing is requested within 10 days of service. Upon that Order becoming a final administrative order, Capital Core Advisors will be required to cease and desist unlicensed activity, provide full restitution to Illinois consumers of $79,585.59, and pay a fine to the Department of $318,000.
“Student loan borrowers should be able to seek assistance without being subjected to predatory or deceptive practices,” said Mario Treto, Jr, Secretary of IDFPR. “These enforcement actions demonstrate IDFPR’s commitment to protecting Illinois consumers against predatory entities that operate outside the law. We encourage borrowers to verify that any company offering student loan debt relief services is properly licensed before providing personal or financial information.”
Under the Debt Settlement Consumer Protection Act, entities providing debt settlement services in Illinois generally must be licensed by IDFPR, subject to certain statutory exemptions. Licensure provides important consumer protections, including examination and reporting requirements; a bond to help cover violations of the law; requirements for an individualized financial analysis and suitability determination before entering into a contract; and limitations on when and how much a provider can charge in fees.
Illinois consumers and borrowers should be particularly cautious of companies claiming to be able to help with student loan debt that:
- Are not licensed by IDFPR;
- Ask borrowers to sign a Power of Attorney or otherwise seek access to personal or financial information;
- Use high-pressure sales tactics to encourage consumers to sign up for services;
- Claim or imply that they have a relationship with a government agency or can provide special access to government programs; or
- Promise to eliminate, substantially reduce or quickly resolve student loan debt.
IDFPR reminds consumers that they can verify whether a company is licensed through the Department’s website: idfpr.illinois.gov. Consumers who believe they have been contacted by an unlicensed entity or have experienced a problem with a debt settlement provider are encouraged to file a complaint with IDFPR and retain all contracts, correspondence, payment records and other documentation related to the company.
Know Before You Owe
IDFPR, in partnership with the Illinois Student Loan Ombudsman, also continues to monitor the private student loan market through annual reporting required under the Illinois Know Before You Owe Act. In June 2026, Governor JB Pritzker signed legislation, Public Act 104-504, expanding the information private student lenders must report to IDFPR, including annual default rates and information regarding loans requiring cosigners.
These additional reporting requirements will provide IDFPR with greater insight into the private student loan market, including the number of loans with a cosigner, placing repayment obligations on more than one borrower. As changes to federal student loan programs and availability may lead more borrowers to consider private education loans, this information will help IDFPR better understand emerging risks and protect Illinois consumers.
Making Cents of Money: Episode 132 – Dodging Student Loan Scams in a Changing System
Consumers can learn more about recognizing and avoiding student loan scams in the latest episode of Making Cents of Money, a financial literacy podcast produced through a partnership between IDFPR and the University of Illinois System’s Student Money Management Center. Episode 132 features guest Greg Jones, Deputy General Counsel for the Division of Financial Institutions within IDFPR.
Launched in 2020, Making Cents of Money has more than 130 episodes covering a wide range of financial literacy topics, providing consumers with practical, accessible information to help them make informed financial decisions. The newest episode focuses on student loan scams, offering tips to help borrowers identify common warning signs, protect their personal and financial information, and avoid falling victim to fraudulent offers or services. Making Cents of Money is available on SoundCloud, Spotify and Apple Podcasts.
