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Student Debt Consolidation (SDC).. Are they scammers?

Started by PCBMermaid, November 11, 2016, 08:33:55 am

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PCBMermaid

November 11, 2016, 08:33:55 am Last Edit: November 11, 2016, 09:17:50 am by TheCollegeInvestor
So yesterday when I got off work at 6pm central, my phone rang. It was a 850 area code from Pensacola, Florida. Even though I didn't recognize the number, I figured I should answer since I too have an 850 area code and live about an hour from Pensacola. It was a young man offering to help lower my student loan payments or help me completely alleviate them with a "student loan forgiveness program". I lied and told him I was at work (because I didn't feel like talking and didn't know if it was legit) and asked him to email me their website and information and call back tomorrow. When I checked my email, this was the website he left: www<dot>studentdebtconsolidationaid<dot>com

Does anyone have any insight on this company? Are they legit or scammers? And can your student loans really be completely FORGIVEN under normal circumstances? Just sounds too good to be true. I know they can be forgiven for things like school closures, identity theft, etc. But forgiveness just because I am too poor to pay them? Lol.

Also, I just completed a repayment program with my lender this year. I had to make ten consecutive payments and then I was able to apply for an Income-based Repayment Plan. So currently with my IBR plan, I am paying zero dollars a month since my tax return claims I made under $10k last year (I'm a server), but I still try to pay a little something each month anyway. Since my payments are so low, is there anything these companies can help me with (like forgiveness)? I heard another rumor that if you make consistent and consecutive payments under the income-based repayment plan, after 25 years your loans are forgiven. Is that true?

Signed,

College-Educated & Confused  :o

TheCollegeInvestor

They sound like a docu-prep company. You can read about whether you need them or not here: https://thecollegeinvestor.com/16429/is-your-student-loan-repayment-company-a-scam/

Based on the info you provided, it sounds like you're already doing the right steps. Just remember to recertify your IBR income every year (and don't miss the deadline or your payments will jump). You don't ever need to pay a company for that.