Because of the huge number of people in distress over student loans hundreds of so called Student Loan Assistance programs have opened. While some may no good work most are simply companies that do poor work , tell lies and use high pressure sales tactics.
6 lies you’ll hear from the student loan assistance companies:
- You MUST consolidate to get on the income driven plans. NOT TRUE: FFEL loans qualify for IBR. If your loans are all Direct Loans, you can have PAYE and REPAY without consolidating
- You MUST work with us to make sure you’re on the right payment plan. NOT TRUE: You want to check and double check the available plans, but you can do this for FREE through your servicer. This is actually their JOB! Make them do it.
- You can qualify for PSLF if you work with us. LIE: You can qualify for PSLF if you work for a government or 501(c)(3), your loans are Direct Loans, and you’re on the right kind of payment plan. If you’re missing any of those, you can’t qualify.
- We can lower your interest rate. LIE: There is no way to lower your Federal Loan interest rate. Interest is set by Congress, there is no shopping around. If you consolidate, you get a weighted average of the loans you consolidate.
- We can qualify you for the Obama Forgiveness Plan. LIE: THERE IS NO SUCH THING!!!
- We work with or for the Department of Education. LIE: No they don’t!
There are times when you might need or want assistance with your federal student loans, but it’s never a good idea to hire and pay a scamster assistance company.
Talk to your servicer first. If you want a second opinion from a knowledgeable professional, contact a student loan lawyer.
A reputable attorney will review your situation to determine whether there’s a problem. We’re regulated by our state bar, whereas student loan assistance companies aren’t subject to any regulation or oversight whatsoever.