Identify And Stay Away From Fraudulent Student Loan Debt Relief Services
By Victor Ochieng
One of the biggest challenges faced by U.S. students from low-income families is student loan debt. After graduation, many students find themselves boggled down with loans that run into thousands of dollars. The loans may get so dragging that some students put themselves in a continuous cycle of studies with the hope that when they finally come out of school, they’d secure a well paying job that would make their loan repayment easier.
Unfortunately, many students end up in bigger debts that scar their lives forever.
Currently, students and graduates owe a whopping $1.3 trillion in student loans with an average of $26,600 per student.
As a result, many companies have gone into the business of swindling money from unsuspecting graduates in the name of providing student loan debt relief. Such companies put up online advertisements and send mails to graduates introducing their services, which they offer at a reasonable fee.
These scammers claim to be linked to the federal government. Some post ads claiming they’ve been endorsed by some celebrity figures. They promise to discharge, consolidate, or reduce your loan debt.
However, it’s important to note that these companies aren’t the quick fix you’re fantasizing about. They don’t have any links with the federal government, neither are they endorsed by celebrities as they appear.
They’re quite timely; they start making contact with graduates during the usual six-month grace period, trying to lure them into buying their beautifully packaged stories.
In many cases, graduates ignore lenders’ calls however, there are those who are quick to pick calls or even contact third party entities they came across on some celebrity social media page. It would only later hit them that instead of solving their problems, they’ve only amplified them. In fact, some students find themselves deeper into debt after being scammed by such fraudulent bodies.
Note: Consolidation of student loans can only be achieved through the Federal Direct Consolidation Program.
Another point to underline here is that no company is going to eliminate your student loans or lower interest rates for you.
The best thing to do is face your lender and deal with them directly. Remember that by ignoring their calls, you give them the right to garnish your paychecks and tax refunds until your loan is fully cleared.
Be wise and don’t fall victim to such scams.