There are legitimate companies that offer useful, recognizably valid services to student loan debtors and are forthright and upfront about charging an appropriate fee. The attorneys at Loan Lawyers can genuinely provide necessary and invaluable assistance to student loan debtors, while accurately answering any questions related to student loan debts.
However, student Loan debtors must be aware of several illegitimate student loan assistance scams especially prevalent in 2017. These telemarketing, mail, and email "student loan assistance companies" boldly make promises and rarely, if ever, deliver. They advertise that they'll lower or eliminate student loan payments, then charge exorbitant fees and ultimately do nothing, finally closing their operation never to be seen again. The following are some of the "sales pitches" from these so-called student loan assistance companies:
The consumer rights and debt defense attorneys at Loan Lawyers assist individuals throughout South Florida with problems related to the payment of their debts, including student loan obligations. The experienced South Florida defense attorneys at Loan Lawyers are here to help find a solution for anyone experiencing difficulty paying student loans. To schedule a free consultation at any of our three conveniently located offices, contact Loan Lawyers today by calling (888) FIGHT-13 (344-4813).
- The student loan assistance company works for the Department of Education. A student loan assistance company will try to gain the trust of a student loan debtor by representing that it is affiliated or works with the Department of Education.
- The student loan assistance company can lower the interest rate of a student loan. There is no way to lower the interest rate on a Federal Loan since it is established by Congress. Student loan debtors receive a weighted average of consolidated loans.
- The student loan assistance company can offer student loan forgiveness, lower payments, or loan consolidation. What typically happens instead is that the company places the student loans into forbearance. The principal continues to accumulate and, of course, no effort remotely close to obtaining any kind of loan forgiveness, consolidation or lowering of payments is ever attempted by the "assistance" company.
- Student loan debtors are required to consolidate their loans for placement on income-driven plans. Federal Family Education Loans (FFEL) qualify for Income-Based Repayment (IBR). If loans are all Direct Loans, debtors may have Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAY) payment plans without consolidating their student loans.
- Student loan debtors are required to work with a student loan assistance company to ensure that they are on the right payment plan. A student loan debtor may do this for free through a student loan servicer.
- The student loan assistance company can help a student loan debtor qualify for Public Service Loan Forgiveness (PSLF). Student Loan Debtors may only qualify for PSLF if their loans are Direct Loans, they work for a government or 501(c)(3), and their payment plan qualifies. Otherwise, there is no way to qualify for PSLF and a student loan assistance company can't reverse this reality.
- The student loan assistance company can help a student loan debtor qualify for the Obama Forgiveness Plan. While at the end of President Obama's second term the Department of Education announced a way for qualifying disabled student loans debtors to have their discharge processed quicker and more easily, there is no Obama Forgiveness Plan of student loan obligations.