Student loan debt is at an all-time high and continues to climb, with an outstanding balance of $1.4 trillion in America. While excessive debt may leave students feeling desperate for relief, it has also created opportunities for scams and theft. The Federal Trade Commission has recently teamed up with several states, along with the District of Columbia, in hopes of terminating these frauds permanently. Although federal and state authorities are taking proactive steps to inform consumers of these scams, there are a few red flags to avoid when dealing with your student loans.
Paying upfront fees
The first red flag to look out for is a company charging upfront fees. Scammers will claim they can save you thousands of dollars with just a few small payments if you pay the price (usually several hundred dollars), but this is false. There is nothing a debt forgiveness company can do for you that you can’t do yourself, so why spend money on something unnecessary? There are legitimate options available for those who need assistance, like refinancing or consolidating your student loans, but they will never require an initial upfront payment.
Sharing your information
It is vital to never share your Federal Student Aid Identification information to questionable sites, or in any venue not directly hosted by the Department of Education. Your username and password used to log into DOE websites, social security number, and address, are all examples of information not to share. Criminals can generate more student loans on your behalf (or worse) after gaining access to your personal information. Most victims remain unaware until the government garnishes their wages, or seizes tax refunds to collect unpaid debt.
Often companies offering student debt relief have sales representatives who are working on commission, claiming that you should sign up before it’s too late. This just sounds too urgent, right?
The truth is, any trustworthy debt program won’t offer short-term availability. Receiving random phone calls, emails, or texts is another glaring sign, as legitimate services do not need to supply a sales pitch or imply the existence of a limited time offer.
Immediate loan forgiveness
The word “forgiveness” can be misleading. The idea of student loan debt being erased or canceled entirely sounds too good to be true because it is. What these companies are aiming to do is scam innocent people for money. Student loan debt can certainly feel like a burden, and scams like this only add to the stress.
Thankfully, with the honesty and convenience of student loan refinancing, you are provided with the option of not only lowering your interest rate but also consolidating to a lower monthly payment. Check out how you can start saving with Purefy today.