College Loan Debt Relief – Is It A Scam?
One of the most common complaints that our debt relief counselors hear is about college loans, and it’s actually quite understandable. In America, the college debt crisis has actually managed to overtake credit card debt as the number one cause of financial turmoil in families. Considering the huge sums many grads need to pay, it’s totally understandable why so many people have approached us for college debt relief.
Sadly, we can’t really help them.
It’s important to understand something about college loan debt relief, and as an ethical debt relief company, we feel like it’s our duty to tell those who are looking for help the truth. According to US law, no debt relief company can offer help with college loans. The only way to alleviate the duress of college loans is to go directly through your lender, or to apply for a college loan forgiveness program through the US government’s college loan site.
In recent years, there has been a major federal crackdown due to the huge number of college loan debt relief company scams that have been cropping up throughout the US. If someone is offering to help you get your college loans forgiven, chances are that it’s a scam. Here are our tips for those who want to deal with college loan debt.
* Talk to your lender directly, and work to negotiate or refinance your loan if at all possible. They may be willing to lower payments, extend the duration of the loan, or enroll you in Pay As You Earn. Believe it or not, they actually do want to help you out. (If you are dealing with government loans, you can usually get information at studentaid.ed.gov about loan repayment aid.)
* Many college debt scammers will pose as government-related sites in order to get people to trust them. In all reality, there’s no “Obama College Debt Program,” or anything similar to it. If there was, there would be a “.gov” site advertising it – not a “.com.”
* All the typical red flags of a bad debt relief company still apply in this case. Don’t assume the rules have changed just because it’s a different kind of debt relief.
* If it’s credit card debt that’s making your student loans difficult to pay off, then by all means, look for a debt relief company that works with unsecured debts. Companies can and do help with credit card debt, and in many cases, it’s the easiest way to get your financial life in order again.
While we can’t help with your student loan debt, what we can do is help you get rid of the other debts you’re dealing with. This in turn will free up money that can go towards your student loans, and make your life a lot easier.