Americans now owe more in student loan debt than in credit card debt. Approximately 71% of all college graduates now carry student loan debt. Of those dealing with student loan debt, 15% are behind on payments. With so many people missing payments, many are now becoming victims. Student loan debt scammers are reaching high and low to take money from debt holders..
Student Loan Debt Scammers Reaching High
Borrowers are more stressed than ever. From super high payments to accounts in default, borrowers can't keep up. Unethical debt relief companies are popping up everywhere. The U.S. Department of Education is warning borrowers to look out for scams. Some of the tactics that they use may seem legitimate, but the red flags are often in the hidden details.
First, any company that offers "instant forgiveness" is a warning sign. No company can promise to immediately or permanently forgive your education debt. This is because your student loan debts are special debts that often do not qualify for certain programs. "Obama plans" and even some cases of bankruptcy in Rocklin CA cannot promise this forgiveness. If the company makes these bold claims, walk away.
Another warning sign is up-front fees. Some companies will promise lower interest rates for large, up-front fees. These often result in the company going out of business shortly after taking your up-front money. These pop-up shops come and go in a matter of weeks and leave you worse than when you started. Never pay up-front fees for debt relief services that aren't run by a legal entity like a lawyer.
Last, be careful of companies that seem pushy or pressure you. These types of sales tactics are designed to scare you. Don't make a quick decision without making sure they are a reputable agency. No real debt relief offer will be for a "limited time only".