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Checklist To Avoid Student Loan Scams

Started by TheCollegeInvestor, August 14, 2015, 07:19:35 am

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Before you go through with any type of company offering to help you with your student loans, please read through this checklist:

How To Tell If Your Company Is A Student Loan Scam

The guide will walk you through the most common scams, the typical words and phrases they use, and more.


Where can I go to actually speak with or work with someone to get my student loans legitimately out of default and enter into a program to reduce the debt and work out affordable payments? 


Hi Debra,

If your loans are in default you have to go through student loan rehabilitation. You simply follow the steps outlined here: https://thecollegeinvestor.com/15577/how-to-get-your-student-loans-out-of-default-with-rehabilitation/


Hi, quick question. Im new to the forum. I keep getting a call from a company called United Student Loan Aid. I currently took a side job to try and pay my loans off in 12 months so Im not too interested, but they wont stop calling. I just wanted to know if this company is a scam?


Never heard of them but they are likely a document prep company that is going to charge you to fill out simple forms that you don't need if you follow the plan you are already on.


Has anyone heard of Finacial Prep Services ?


I spoke with a company today called Alum financial. They seem to be a legit company and the guy was very nice but I'm worried about it being a scam have you heard of this company? He told me navient is in a lawsuit and that why I'm eligible for forgiveness. I would really love for my loans to be forgave but I'm so scared of all these companies contacting me being scams.


We don't make opinions on third party companies. We recommend that you read this article and make an informed decision before working with a third party company that charges you for assistance, especially given that you can do everything with your Federal loans for free: https://thecollegeinvestor.com/16429/is-your-student-loan-repayment-company-a-scam/

Speaking specifically to the Navient lawsuit, that doesn't involve you or any borrowers. Multiple state attorneys' general and the CFPB are suing Navient over their practices. If/when the case is over, there isn't going to be any forgiveness - just changes to their practices and likely some type of fine. And this will likely take years to resolve.


I'm in a IBRP for 5 years now and am 70. Recently my health took a downward turn and I'm concerned about my daughters responsibility should I die. These were parent plus loans.
Does the IRS send relatives
a 1099-C when the loan is discharged?



I went with a company called Academic Support Center to help me with my student loan. My pay check was being garnish to repay my student loan. This company said they can get the garnishment dropped and lower my monthly payment. Are they legit or am I being scammed?


Quote from: TheCollegeInvestor on May 09, 2016, 09:55:54 pmNever heard of them but they are likely a document prep company that is going to charge you to fill out simple forms that you don't need if you follow the plan you are already on.
Is there anything you can do to get your money back from scammers like these? I just found out today I fell for one of these scams almost two years ago. They've been taking a "monthly maintenance fee" of $39, but this doesn't make sense as they also send me emails stating I am no longer enrolled in that service. I keep calling them to try to cancel but haven't been able to get ahold of anyone.
If nothing else, should I just call my bank to cancel my card?

I appreciate any and all advice!



Forgiveness cancels your debt, whereas forbearance delays your payments. You can ask your lender for forbearance if you're experiencing problems making student loan payments. If you don't fulfil eligibility standards, such as being unemployed or having significant medical expenditures, your lender may refuse to grant you a forbearance.


Do you know if ENM consulting services is legit are a scam

It looks like they put my account into forbearance.

They charge me a fee for 12 months and then zero payment monthly for the next few years.  Is this how loan forgiveness works ??