Frank Financial Aid said it has removed information from is website offering students assistance in getting emergency aid through the CARES Act after the Federal Trade Commission warned the company that it could be misleading consumers about the coronavirus relief program.
The Nov. 10 letter highlighted the company’s claims that it gives students “everything you need” to apply for the emergency grants. But the agency said the company, which offers financial aid application assistance, mainly provided students with a form letter that was not tailored to the application process and documentation requirements of each school.
The FTC also said the site offered cash advances that can be paid back “when your financial aid comes in.” But the fine print required the advances be paid back within 61 days.
Frank said in a statement on Tuesday, “Frank’s free appeal tool for emergency aid and the optional aid advance feature of its membership product were both of value, fairly advertised, and put to good use during their relevant periods. Although we disagree with the FTC that there were any issues with either offering, in order to resolve this matter and as both products were no longer timely, we removed them from our website last week.”