Washington attorney general sues over student loan practices

SEATTLE — Washington Attorney General Bob Ferguson has filed a lawsuit against a student loan processing company, accusing the firm of exploiting student loan borrowers for profit.

The lawsuit filed Monday says StudentLoanProcessing.US and its president, James Krause, violated Washington’s Debt Adjusting Act and Consumer Protection Act. It says the company charged illegally high fees and failed to inform customers of their rights.

Ferguson says StudentLoanProcessing.US charged its customers at least $250 to help them apply for federal loan repayment programs and loan consolidation. Washington law limits such initial fees to $25.

A total of 88 Washington consumers, with an average student loan debt of approximately $58,000, used the company’s services. Ferguson says the company collected about $132,000 in fees from these consumers.

An email to the company seeking comment on the lawsuit was not immediately returned on Tuesday afternoon.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Darryl Dyck file photo Mohammed Asif, an Indian national, conspired with others to bill Medicare for COVID-19 and other respiratory tests that hadn’t been ordered or performed, according to a U.S. Department of Justice press release.
Man sentenced to 2 years in prison for $1 million health care fraud scheme

Mohammed Asif, 35, owned an Everett-based testing laboratory and billed Medicare for COVID-19 tests that patients never received.

Snohomish County Fire District No. 4 and Snohomish Regional Fire and Rescue responded to a two-vehicle head-on collision on U.S. 2 on Feb. 21, 2024, in Snohomish. (Snohomish County Fire District #4)
Family of Monroe woman killed in U.S. 2 crash sues WSDOT for $50 million

The wrongful death lawsuit filed in Snohomish County Superior Court on Nov. 24 alleges the agency’s negligence led to Tu Lam’s death.

Judy Tuohy, the executive director of the Schack Art Center, in 2024. (Olivia Vanni / The Herald)
Director of Everett’s Schack Art Center announces retirement

Judy Tuohy, also a city council member, will step down from the executive director role next year after 32 years in the position.

Human trafficking probe nets arrest of Calif. man, rescue of 17-year-old girl

The investigation by multiple agencies culminated with the arrest of a California man in Snohomish County.

A Flock Safety camera on the corner of 64th Avenue West and 196th Street Southwest on Oct. 28, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Everett seeks SnoCo judgment that Flock footage is not public record

The filing comes after a Skagit County judge ruled Flock footage is subject to records requests. That ruling is under appeal.

Information panels on display as a part of the national exhibit being showcased at Edmonds College on Nov. 19, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Edmonds College hosts new climate change and community resilience exhibit

Through Jan. 21, visit the school library in Lynnwood to learn about how climate change is affecting weather patterns and landscapes and how communities are adapting.

Lynnwood City Council members gather for a meeting on Monday, March 17, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Lynnwood raises property, utility taxes amid budget shortfall

The council approved a 24% property tax increase, lower than the 53% it was allowed to enact without voter approval.

Lynnwood
Lynnwood hygiene center requires community support to remain open

The Jean Kim Foundation needs to raise $500,000 by the end of the year. The center provides showers to people experiencing homelessness.

Logo for news use featuring Snohomish County, Washington. 220118
Vending machines offer hope in Snohomish County in time for the holidays.

Mariners’ radio announcer Rick Rizzs will help launch a Light The World Giving Machine Tuesday in Lynnwood. A second will be available in Arlington on Dec. 13.

UW student from Mukilteo receives Rhodes Scholarship

Shubham Bansal, who grew up in Mukilteo, is the first UW student to receive the prestigous scholarship since 2012.

Roger Sharp looks over memorabilia from the USS Belknap in his home in Marysville on Nov. 14, 2025. (Will Geschke / The Herald)
‘A gigantic inferno’: 50 years later, Marysville vet recalls warship collision

The USS Belknap ran into the USS John F. Kennedy on Nov. 22, 1975. The ensuing events were unforgettable.

Floodwater from the Snohomish River partially covers a flood water sign along Lincoln Avenue on Thursday, Dec. 11, 2025 in Snohomish, Washington. (Olivia Vanni / The Herald)
Photo gallery: Images from the flooding in Snohomish County.

Our photographers have spent this week documenting the flooding in… Continue reading

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.