4 Signs You Are Dealing With Student Loan Scammers
- It is reported that millennials owe about $1.5 trillion in student loans.
It is reported that millennials owe about $1.5 trillion in student loans. Scheming companies see this as an opportunity to make a quick buck off people who are desperate for options.
Here are four signs that you are dealing with a scam:
Ask you to pay upfront or commit to a monthly fee.
If you are asked to pay upfront or commit to a monthly fee, it is a sign that you're dealing with a company who wants to make money off you. The federal government allows you to enroll into affordable repayment plans and apply for loan forgiveness for free.
The U.S. Department of Ed offers resources on affordable federal repayment plans.
Request personal information.
Companies will ask for your Social Security number or federal loan login (FSA ID) so that they can make decisions on your behalf regarding your loans. They then take your login and complete forms that you could have done on your own for free. You should always be careful of sharing your Social Security number and giving a third party the right to make decisions on your behalf.
Promise immediate student loan forgiveness.
Although it sounds good, there are no easy loan forgiveness solutions. Federal forgiveness programs take anywhere from 5-10 years of payments before your balance can be forgiven. Any company that tells you that you can pay and receive immediate forgiveness is definitely bending the truth.
Put pressure on you
Time is the enemy of any type of scam. The goal of a shady salesman is to get you to commit as soon as possible and collect their money. Many of these companies will tell you that the offer is limited because a law or program is discontinuing soon.