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Is Debt Validation Program a scam?? ???

Started by anjr93, December 03, 2021, 10:22:30 am

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anjr93

December 03, 2021, 10:22:30 am Last Edit: December 03, 2021, 11:24:45 am by TheCollegeInvestor
So on my search for solutions to my private student loan debt, I came across privatestudentloanassistance<dot>org

I put in for a consult because the .org made me think it was at least somewhat reputable.

The guy called me and basically explained that they work the system.
When The loan goes to collections the private loan borrowers write off the loan amount as a loss in their taxes and then the debt collector still tries to get the debt paid (which is illegal)

So what they do is try to get the debt collector to validate the debt and when they can't it'll go to another debt collector. So basically it's a process of 2.5-3 years of this game. He also assures me that in the event they would take us to court he would handle all of the support and I wouldn't need to pay extra.

On the one hand it sounds amazing because I wouldn't need to worry about it and I wouldn't need to pay it. But on the other hand my credit and my cosigners credit is going to be shit for the next however many years. Oh and I'd be charged about $350/month until the debt is officially labelled uncollectable

I wanted to get your thoughts.

TheCollegeInvestor

First I would encourage you to read this: Student Loan Scams.

Second, it sounds like you're aware of the risks. Plus, you're paying $4,200 per year ($350 per month) to have this done for you - over 3 years is $12,600 - all for a "maybe" answer to your student loans. And that's assuming you only have this private loan - if this is a federal loan they are always collectible.

I don't know what your loan value is, but that doesn't sound like a good financial deal. Could you pay that to your student loans? If you have good credit, can you refinance?