It's apparently both a loan consolidation and forgiveness program. You do have to pay 4 payments and then a lower monthly payment but they claim to wipe out a huge percentage of my student loan. They claim they are a federal run program. It feels too good to be true which it probably is but wanted to get other feedback.
Before working with any third-party, check out our guide to student loan scams (https://thecollegeinvestor.com/317/top-student-loan-scams/).
Just joining this site. I was contacted by "Alliance Loan Support", I too am wondering should I continue with them. Their offer sounds too good to be true. They want (4) payments for $248, which would be about a $1000.00. This would only be for paperwork to see if I qualify. I have not paid them anything yet and with me signing the documents can I still cancel everything? I believe i need to research further. Thanks for any input you have.
I have worked with them. While they aren't "explicitly" a scam, and are actually useful, they are not directly affiliated with the department of education, and their service is not required to help with your loans. Their website even has this statement (which wasn't there when I started working with them):
"DISCLOSURE AND DISCLAMER Alliance Loan Support (ALS) is not affiliated with the following: any local, state or federal government agencies; Department of Education; or any student loan servicers, lenders or providers. We are not a lender, and we are not a legal advice service. We are an independent company that specializes in the development and administration of documents to assist debtors with the necessary paperwork needed to complete the federal student loan consolidation and/or forgiveness process. If you need legal or financial advice please contact an attorney or financial professional. Ability to Apply for Relief. You can apply for loan consolidation or alternative repayment programs on your own, without paid assistance, through the DOE at www.studentloans.gov. Each of the DOE's student loan forgiveness programs has specific conditions and requirements that must be satisfied, and borrowers may not qualify under any of these programs."
So what do they offer? Essentially you pay them 4 payments to hardball negotiate your loans and consolidate them with another Server, and enroll / process any federal loan forgiveness programs you are eligible for on your behalf. Essentially you pay them to hunt out all of the paperwork and programs you qualify for, and process it. I went from Fedloan to Nelnet as my servicer, and they managed to drop a couple of thousand from what I owed.
When I first enrolled with them, they were not entirely transparent on who they were, but I'm actually happy I ended up doing their program.
In short, use at your own discretion. If you have extra money, and have found over the years that student loan forgiveness programs, and filling out the paperwork for them keeps ending up at the bottom of your stack, it may be worth it. But everything they do is something that could be done for free if you have the motivation and wherewithall to do it yourself.