Student Loan Forgiveness: How To Find Legitimate Resources
Traditionally, this is the time of year when aspiring graduates eagerly plan their walk across the stage and claim their degrees. Soon after, the student loan repayment process begins. The Better Business Bureau warns against deceptive fraudsters and encourages graduates to carefully research reliable sources related to federal reimbursement plans before giving out personal information.
Read the latest news on Emergency COVID-19 Student Loan Assistance.
Beware of companies that promise to reduce their debt by lowering their payments by enrolling in student loan forgiveness programs or other programs. They may also falsely promise to apply monthly payments to consumer student loans and improve credit scores – all you have to do is pay a small fee so they can negotiate with the lender on your behalf. last name. In another version, dishonest collectors claim that they can save money by consolidating loans, if a nominal fee is paid. Keep all your personal information private and never share it with an unsolicited source.
How to protect yourself from student loan scammers:
- Look for the lender. Visit BBB.org to read company profiles and verify companies before working with them. The FTC has educated consumers about student debt relief scams at ftc.gov/StudentLoans.
- Report it. If you’ve been the victim of a suspected scam, report it to BBB.org/ScamTracker.
- Empty promises lead to an empty wallet and more debt. Only fraudsters promise quick forgiveness of loans. Scammers often claim to be affiliated with the government. Never pay a fee up front for help. Never share sensitive information, such as your FSA ID.
- Find a reliable source. Consumers can apply for loan deferral, forbearance, repayment and postponement or dismissal directly through the US Department of Education or their loan manager at no cost, and do not need a third. For students in Canada, find more information here on student loans and grants.
To learn about federal student loan repayment options, visit StudentAid.gov. Student loans can only be canceled under specific circumstances, so contact your lender directly to see if any options are available to you.
If it sounds too good to be true, it probably is. A business that claims they can pay off their student loan debt in minutes isn’t being honest.
To find a business you can trust, check out BBB.org. To report a scam, go to BBB.org/ScamTracker.
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