Ways to Avoid Getting Tricked by the Student Loan Scam
Ways to Avoid Getting Tricked by the Student Loan Scam For many students, taking a loan is the only way of financing their education. A recent study shows current and former students owe at least $1.5. Did you benefit from student loans? Have you paid or you are in the process of paying? Whichever the case, you need to be careful and beware of scammers. That is why the Consumer Finance Protection Bureau has constantly issued warnings regarding what to consider when seeking help or managing your student loans.
For instance, you do not need to submit payments in order to be assisted in handling your loan.This is because debt relief entities are not capable of striking a special deal with creditors on your behalf. The offers given to you by these institutions contravenes the provision of the law and should never be accepted. In addition, the so-called relief companies are in business and will cost you a lot of money and even get you into more debts. If you need help or clarification regarding your loan options, the best way to get help is using Repay Student Debt program. You will learn how to handle your student loan debt even if at the present you are in default
What you should know
There are so many companies claiming to be in a position to help you manage your student loan.You may have come across their ads in various social media platformssuch as Facebook,Instagram or even on Google. They may offer deals that appear so appealing to be turned down.Before making a decision, remember the warning given earlier: you do not need to submitpayments in order to be assisted in handling your loan.This does not mean help is not there, butrather it is something you can effectively do yourself and avoid being a casualty. It is up to you to decide whether to handle it yourself or hire professionals to help. Why is that warning sound? Forthe followingreasons:
• You can enroll in payment programs free of charge at StudentLoans.gov.
• The debt relief entities are not capable of striking a special deal with creditors on your behalf
• It is the federal law that establishes requirements and guidelines under IBR as well as PAYE among other payment-related programs.
You can either do it yourself or pay a company to help. I choose to hire a company, be careful not to be conned. There are a number of things you can do to safeguard yourself from being duped.The following section will address that.
Avoid Getting Tricked by the Student Loan Scam
In light of the above, it is important to be well acquainted with the tricks that scammers use. This is the best protection you can ever have. The following the most common red flags you need to pay attention to:
• Upfront fee or monthly charges.
Any loan relief company that demand upfront money or monthly charges is not legit. As mentioned at the outset, this is something you can do for yourself.While there nothing wrong with organizations to charge, the law forbids entities that provide student debt relief from collecting charges before they practically lower or settle client’s loan. You can visit studentloans.gov and enroll in an income-driven compensation strategy. You will learn various government forgiveness programs at no cost. If you still feel you need an expert firm, then seek advice from a certified loan counselor.
• Loan forgiveness promise
Any company promising to offer loan forgiveness is illegitimate.There are several legitimate government loan forgiveness plans, among them Public Service Loan Forgiveness. These government programs reduce federal student loans when a certain period of time elapses. Nevertheless, there are only some specific individuals who qualify for these plan sand not everyone. For example, the person must be working for the government on a full-time basis or a 501(c)(3) charitable organization and submit full monthly payments for a period of at least 10 years.
• A sales assistant forcing you to sign up.
Entities offering debt relief services to students have sales people who are paid depending on the number of clients sign up. For this reason, they will impart some feeling of urgency in you. They may tell you the offer might expire just to convince you. Be very careful with such advances. Also, you cannot expire over a very short period of time.Carry out a lot of research on the legitimacy of a debt relief company before you commit yourself to anything.
• Asking for sensitive individual information
Some loan relief entities ask students to offer their IDs, or perhaps their social security numbers. With this information, they can access your account and make critical decisions on your personal behalf. A legitimate student loan relief institution will not demand such basic information. Besides, some loan relief organization may ask you to sign the power of attorney covenants that permits them to talk to your lender on your behalf.You are not under obligation to sign such agreements and if you do that you end up losing access to your account.
You need to avoid companies that markets on social media platforms such as Facebook. Carry out extensive research if you have to respond to an advertisement. More importantly, avoid your personal details to online forms unless you are certain they are from legitimate programs.Any company claiming to have links to the Department of Education is fraudulent and you shouldn’t entertain its ideas. The department of education does not associate itself with any loan relief institution. In addition, you should avoid any institution allege to offer a set payment or perhaps forgiveness.
An institution cannot offer you forgiveness or warrant an income-based recompense since the two-change depending on your income. Reject even the offers for instant loan cancellation. Also, do not entertain the idea that a company will buy your loan and pay it for a set value. Do comprehensive research about your debt and remember legitimate loan plans that are mentioned here best money lender in Singapore the reason that they can assist you.