Most times, student loans can be shielded as Common Student Loan Scams but not until you look closely you won’t be able to identify them properly.
Looking loosely, the worst student loan companies seem to be scammers. For instance, the Navient that requested for Lawsuits which brought about the allegation from Pennsylvania, as well as the Consumer Financial Protection Bureau, made the company (Navient) look as though there was a scammer. Even as this transpired, there are still real student loan forgiveness scams that borrowers may encounter.
In terms of seeking help in the area of getting a loan temporary payment break, reducing the monthly payment, or helping t repay loans faster, you will actually see that student loan scammers may make these things fiction.
You can actually figure out the worst and commonest student scams you may face on a course of a loan. Simply by reading through this article, you will be able to identify them easily and this will guide you not to be scammed.
WHAT YOU SHOULD KNOW
Nevertheless, there are things you should know to be able to identify with the common student loan scams and how you can avoid proceeds further.
- Firstly, you should know that there are precepts for which that your request for consolidation, deferment, and forbearance will be processed. The Federal Department of Education provides and processes applications of the above request of yours. There go beyond showing you how to complete the paperwork.
- Secondly, knowing that you may have to meet the federal agency stated above, you should know that there is no payment involved for you to make changes to your student loans.
- Thirdly, not all companies are going to terminate or reduce your loan debt. To be real, don’t trust any company that says so and don’t give them money in order to make adjustments.
- Lastly, avoid pop up information that seeking for sign up over student loan providers.
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The most common student loan scams involve paying fees to consolidate or to get forgiveness and gimmicks to eliminate your loan debt.
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The Most Common Student Loan Scams and How to Avoid Them · 1 Scam #1: Filling out Forms for Fees. 1.1 Getting scammed vs paying for the help you
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Identify a Student Loan Scam. Borrowers have reported receiving phone calls, emails, letters, and/or texts offering them relief from their federal student loans
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Identify student loan scams so you don’t get fooled. Avoid fraudulent companies by not sharing personal information and being wary of suspicious links.
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And it’s not illegal for companies to charge for services you could do for free. Some people compare student debt relief services with tax preparation. » MORE: …
Fill out forms to lower your monthly student loan repayment
Free forms are actually available for you to fill out to lower your monthly student loan payment and have an amount you can actually afford with respect to your income. Someone can as well do this for you as you can equally do. Visit StudentLoans.gov is an official federal student aid website available to offer you repayment application forms.
Paying for help you need may actually land you into scammers.
This context can be used against you and that is to say that some companies have taken advantage of borrowers who don’t understand their options. You may be robbed off of free opportunities because they will fail to reveal the free format of opportunities and help you need by placing monetary tags on them.
Are you seeking repayment Options and Loans Consolidation?
This could be a way to eliminate student loan repayment options. So as there are legitimate servicers under this category of help, so as they are scammers ready to scam you. To avoid getting scammed, you should apply for deferment, forbearance, or a different repayment plan is optional.
Also, know that both federal loan companies and private companies have no charge placed on this request. You can complete and submit your student loan consolidation application yourself for free and not that there is nothing like private student loan consolidation. You may stand the chance of converting this opportunity of combining more than one private student loan into one and that makes it easier for you to handle.
Issues of Getting Loans Forgiven, Cancelled, Discharged, Reduced, or Eliminated for a fee
Many borrowers have always wanted their debt erased. It is almost impossible for you to erase your debt. Even at the point of death. It is almost impossible to erase your debt.
The same is applicable down to tax payment. Your estate for instance may have to pay for the debt assuming you are dead.
Scams over this context may typically come as telling the borrower. That when you pay a large sum to the company. Then the company will get its loan discharged. Some other scenarios could. Be that the borrower will have to send the student loan repayments directly to. The company other than the student loan servicer.
Note: Federal student loans can only be discharged under certain circumstances. They are as follows
- Total and permanent disability
- School closure
- False certification
- Unpaid refund
In both ways, it can all be a scam and will end up eating your money. This will result in an accumulation of interest as a result of late payment.
Avoid supplying your personal details
The U.S Department of Education will not contact you for any reason. For your personal details like date of birth, vitally; security number, FSA ID number and password or address, or account. The only persons that can ask you this are scammers. And remember the order of their words “you need to be fast about this”, every pressuring words.