One of the suits, against Broadsword Student Advantage LLC of Frisco, Texas, was filed in Champaign County Circuit Court. The second suit, against First American Tax Defense LLC of Park Ridge, was filed in Cook County Circuit Court.



Broadsword and First American Tax, which was founded in 2012, couldn't be reached for immediate comment. The lawsuits allege that they violated consumer-fraud and debt-settlement acts.



First American Tax, for example, advertises a range of student-loan relief services, including the ability to negotiate lower monthly payments, remove wage garnishments and get loans out of default, Madigan's lawsuit said.



In reality, First American Tax doesn't have the ability to perform such services and does little more than complete applications to federal borrower help programs that are already available for free from the U.S. education department, the lawsuit said. First American Tax also lacks a license to offer and execute contracts with Illinois consumers, the lawsuit said.



Madigan said current and former students should never pay upfront for help with student loans. Sources for help include the Consumer Financial Protection Bureau or the National Consumer Law Center, she said.