Many College Loan Relief Offers Are Bullshit — Here’s How To Avoid Getting Scammed

by 2 years ago
Student Loan Debt


Getting out of debt is possible but it takes a little more than a couple tricks. Unfortunately, just like with everything else, there are scammers around ever corner looking to take a sucker’s money, and put people deeper into debt, just to make a little money.

College loan relief scams are on the uptick over the last few years, mostly due to the fact that people just can’t pay back their loans. These con artists and scammers basically offer paperwork processing services for free federal loan consolidation and…well that’s about it. They basically charge a fee for something people can do for free.

But that’s not the only way to play the college loan relief scam game, according to Forbes.

I’ve been watching so-called “debt-relief” firms offer their services over the past two years or so and have called many of them. They are not hard to find because they pop up first when you enter “student loans” or “college debt.” They may even display government logos on their sites.

Since search engine make money by featuring paid advertisers, it’s hard to notice that the most useful site sponsored by the U.S. Department of Education (DE) is free.

Nevertheless, the commercial sites are slick and often promise to relieve or forgive your student debt, which none of them can do — it’s up to the DE. The Consumer Financial Protection Bureau (CFPB) also has been monitoring the online debt firms.

Here’s another red flag — the company needs a ton of money to help you get out of debt.

The CFPB has seen an increase in the number of companies and websites requiring large upfront fees to help borrowers enroll in a plan that can be done for free.

Now I realize it takes money to make money but it certainly doesn’t take money to save money.

To date, there’s no real legislation to keep people from screwing you out of what little money you make so the best piece of advice is avoid Googling a solution and just go straight to the official U.S. Department of Education website.

[via Forbes]

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