I had a company called federated student loan services contact me. They are saying they can consolidated my loan, lower my payment and will show up that my loans on nelnet paid in full thru consolidation. I was told my payments would be for 300 months and what is left would be forgiven. My payments would be $41 plus 20 fee to them to monitor my account and a one time fee of $799 to start the process. Now I was told this was an IBR plan they are just more flexible than nelnet. Scam?
Hi :) I am in the same boat. I have spent about 2.5 hrs on the phone between yesterday and today with a company that sounds similar. They are going to do income based repayment plan and enroll me in the forgiveness program because of the line of work I am in. They are only going to use my income (via pay stubs) and household size. They played with the numbers and are telling me my payments will go from $400 (with Nelnet) to $100 a month including their $40 monthly fee. They compared their services to that of an accountant. He said an accountant knows what deductions to make to get people their highest refund. He said they play with the numbers to make it legit and still lower everything immensely. Every question I asked him, he came back with an answer that made sense. So, I guess I too and hoping people who are involved with this type of thing let me know their experiences. Thanks!
I'm in the same boat as well and I have no idea if it is legit or not. I posted the same thing but haven't gotten any responses. Does anyone have any information on working with Fed loans and DOE?
All of these companies should be avoided!
You can do the same thing yourself by logging onto StudentLoans.gov and clicking "Income-Contingent Repayment" on the sidebar. You'll fill out some information, and they will lower your payment to the IBR or PAYE plan, if you qualify.
These companies literally charge you $799 and other fees to simply do that.
Have you logged onto StudentLoans.gov yet and tried?
So the IBR plan and public service loan forgiveness through the department of education is a scam?? Because the DOE uses Fedloans apparently.
I checked out Studentloans.gov and it was the same information tat the women was telling me on the phone.
The DOE uses FedLoan Servicing, a specific company. Federated Loan Services is a company that uses a similar name, but isn't associated with the Department of Education in any way.
IBR is a Federal program, and you can sign up for it for free on StudentLoans.gov.
PSLF is another program, and you can get the forms you need on StudentLoans.gov, but you can't apply for forgiveness until you've made 10 years of qualifying payments.
The difference is this 3rd party company will charge you to do it, while StudentLoans.gov is free. Why pay $799 when you can do it for free? If you have that much to spend so easily, put it towards your student loans!
My wife received a call from an individual claiming to be a government representative. They claimed they could drastically reduce her debt. They wanted 299.95 for two months and 39 dollars a month after that. On the paperwork they sent, the 299.95 charges were a fee to ask for a suspension of payment on the loan and the 39 dollar fee was a monthly payment for life lock coverage. When quizzed about this being a scam, the caller hung up on her. They get you to electronically sine a limited scope power of attorney.
SCAM!!!!!! The company name (?) is Student Loan Council, Huntington Beach, California.
Hi I just talked with a company that I think my be a scam EZ student loan solutions and I don't know if it was a scam it took about an hour to finish from start to finish. Can you help and verify if I have just been scammed?
The best way to tell if the company you're working with could be a scam is to follow this guide: https://thecollegeinvestor.com/16429/is-your-student-loan-repayment-company-a-scam/