Representative Peter Welch calls them a new breed of predatory debt-relief companies.
In Vermont, the average amount of school debt is nearing $30,000.
While it makes sense to want to consolidate debt, experts say don't fall into a trap. It could jeopardize your long-term credit history, or in some cases your social security number.
"No matter what we do, no matter what laws we pass - there is going to be folks out there who see the trillion dollar market as their opportunity to steal money," Rep. Welch said.
Vermont residents should call the Vermont Student Assistance Corporation (VSAC) for more information at (802)-654-3766.
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