Beware of Student Loan Scams
There has been a sudden rise in the number of companies that are advertising alleged federal student loan assistance programs or student loan debt relief. Be warned — many companies promoting these programs are misleading borrowers into paying for what your servicer can provide for free. These companies fail to inform you that this is something you could do yourself without paying them a substantial fee.
- Debt Relief companies advertise on social media/Facebook, television stations such as MTV, HGTV, Discovery and History Channel, radio ads and direct marketing.
- Debt Relief companies charge a fee for services that are available for free. Examples are enrollment fees of up to $999 and monthly fees of $39 per month for the life of the loan.
- Go to Studentaid.ed.gov to learn more and find out who your loan servicer is.
- Consolidation and enrollment in income-driven repayment plans is free!
- Do not share your PIN!
- Beware of any contract that assures you the company will assume all responsibility for notifying your servicer of address changes or items for which your loan promissory note holds you responsible.
- If the company provides loan forgiveness or cancellation, walk away!
- If you think you’ve been scammed, complain to the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC).
If you are having trouble paying your federal student loans, there are some good and reasonable solutions that are available to you free of charge by simply contacting us. The Income-Based Repayment (IBR) program can reduce your monthly loan payment and is based on your income. There are loan forgiveness programs for borrowers who teach and meet the eligibility criteria, and there are discharge benefits should you become totally and permanently disabled. Many other deferment and repayment plan options are available as well.
We urge you to explore your options on our repayment information page or contact us at (866) 729-4338, Monday-Thursday 8:00am-9:00pm or Friday 8:00am-5:00pm ET before paying any company that claims they can help you with these programs.