Consolidating fed student loans
The "Student Loan Project" and the "SL Programs Student Loan and Debt Consolidation" websites were sent cease-and-desist letters by the Department of Education for using the agency's seal earlier this year.About one-third of survey respondents said that the student debt relief companies they paid did help, despite charging them for the service that is available for free.You pay the money, the firm does nothing at all and is shut down 6 months later. However, many totally legitimate student loan assistance companies simply charge you for services that you can go do yourself for free.For example, they might advertise student loan consolidation, and charge you to consolidate your student loans – even if you don’t need a consolidation, or a consolidation is not right for your situation based on the programs available you!It’s important to do your homework and know what to look for so that you can make a smart choice.One company that I’ve personally vetted and have direct contact with the CEO is Ameritech Financial.
For example, the firm might advertise ‘student loan forgiveness’ or ‘lower student loan payments.’ They charge you hundreds of dollars and say ‘they’ can do it but in reality don’t actually do anything at all.
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One of the most frustrating questions I get everyday (seriously, everyday), from readers is: Is this company that's saying they want to help me with my student loan debt a scam?
Once they’ve received all your payments, you’ll be set, right?
In the meantime, all they will do is set your loan on forbearance so you won’t have to make a student loan payment. The problem is, these scams usually involve the company taking your money, your student loans remain in forbearance for months or years, and the borrower finds out that the forbearance has expired and that nothing was done.
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Those surveyed named about 200 companies they had heard of that charge for some kind of student debt relief.