(ABC 6 News) – The Minnesota Attorney General’s Office warns of fraudulent loan relief companies preying on student borrowers.

The warning comes after a three year pause on student loan repayments.

Some of the fraudulent companies often charge consumers hundreds or thousands of dollars in upfront fees, illegal in Minnesota. Others promise immediate student loan forgiveness or cancellation, which only the federal government has the power to grant.

On Sept. 6, the AG’s office opened an investigation into 52 student-loan debt-relief companies potentially violating Minnesota law, many of which originate in California.

On Dec. 12, the office of Attorney General Keith Ellison announced it reached a settlement with one of those companies. In Ramsey County, the Alumni Support Center must immediately pay the state $179,067.10, the full amount collected from Minnesotans, in restitution.

The AG’s office said it will use that money to provide restitution to affected consumers.

Evan Romanoff is an assistant attorney general in Minnesota and has worked on several cases regarding fraudulent student debt-relief companies. “They’ll also often misrepresent their fees. Consumers often are lead to believe that the fees they’re paying are going toward paying down their student loans when, in fact, they’re just fees that these companies are pocketing.”

Red flags to look out for include requiring immediate action, upfront fees, claiming that they work with the government and not being registered with the U.S. Department of Commerce.

If you are suspicious that you are being scammed by one of these companies or know that you have been scammed, contact the Minnesota Attorney General’s Office at (651)-296-3353 or toll free 1-800-657-3787.