Today, the government is loaning billions of dollars to help college and university students to finance their education. However, the government continues to pressure the loan beneficiaries to clear their loan.
Because of increased pressure on the students to clear their loans, there have emerged scammers who claim to be in a position to help students clear their loans faster and at reduced interest rate. Others even promise that they can help student eliminate their loans and escape from paying. The fact is that these scammers only aim at getting your money. In this article, I will take you through some of the common student loan repayment scams.
Lawsuit student loan scam
This is a case where a law firm claims to be in a position to settle your student loan. The law firm will ask you to make a full repayment or whatever amount you can afford to the law it. The law firm then promises to negotiate for loan settlement with your lender. However, it does not make any payment during the negotiation process making you enter into a default on your student loan. What happens is that your credit score is affected despite making thousands of dollars to the law firm.
Loan consolidation scam
After graduating, most students normally want to consolidate their loans into one. During this process, some companies will charge you what they call consolidation fee but they will end up doing nothing. There is no consolidation fee or the processing fee that a student should pay. If you are a beneficially of the federal loan, there are no student loan consolidation charges you should pay. Loan consolidation is an area that is ripe with scams, student need to be aware.
Student loan debt elimination scam
The student loan will have to be repaid whatsoever. There is no way that it can be eliminated unless there are provable and federally qualifying reasons such as school closure, permanent disability, death, identity theft or falsification of documents. Otherwise, without such reasons, there is no way you will escape from paying your college or university loan. Therefore, if you come across a firm that claims to help you get your student loan eliminated or cleared, just know it is a scam. Do not fall for their trick as their intention is to rip money from struggling students. When the deal is too sweet, you better think about it more than twice.
It is easy to detect student loan repayment scams. For instance, if a company asks you to make an upfront payment to get help with your federal student loan, just quit from its deal since it is a scam. Any assistance with your federal loan is offered free of charge. Also, beware of official sounding words such as Federal, National among other words in a private company. Avoid deals with companies that advertise their services on radios, Facebook or as ads on internet search results.