Facing any amount of student loan debt is a stressful and tense situation. With the sheer volume of money tied up in student loan debt, it’s not surprising to see scammers coming out of the woodwork claiming to be able to help. Unfortunately, scammers can be very convincing and get away with stealing thousands of dollars far too often.
Well, the time has come to put a stop to student loan relief scams and it starts with knowing how to recognize a trap before it’s too late. Today we’ll take a look at three common student loan scams and how you can avoid making the costly mistake of hiring a swindler.
Remember: if you are ever unsure of a student loan relief program you should always consult a trusted student loan lawyer like McVay Law LLC in Nashville, TN.
Federal Student Loan Relief Scam
In the world of federal student loans, there is just simply not much wiggle room when it comes to settlement options. Since there are not a lot of options, scammers will attempt to approach with one plan that “works” for everyone, when, in fact, it only works for some.
This plan includes consolidating your loan and placing you in a repayment plan based off of your income. Now it’s important to note that this plan does work for some people, but everyone’s situation is different and should be approached differently. Not only does this plan not work for some people, it might not even be a choice in the first place. Scammers are fully aware if you are not eligible for this plan of action, but will happily take your money anyways.
Student Loan Consolidation Scam
Upon graduation, some individuals are in a position where consolidation can be very helpful. Of course, this plan isn’t right for everyone, but this time the scam isn’t convincing somebody that they need an unnecessary service, but instead promising a service and delivering nothing.
The way that scammers do this is by charging a “consolidation fee.” To someone looking for student loan debt relief, a fee seems like a reasonable part of the process. However, federal student loans are consolidated with absolutely no fees.
Private student loans can be refinanced by a number of lenders. This entails taking out a new loan while the lender pays off your current loan. To make sure your new lender isn’t a scam artist, select one through Credible, which is a comparison tool that helps you pick a certified lender.
Advanced Fee Scam
If someone is promising you excellent interest rates but requires an upfront fee, you should immediately seek the guidance of a student loan lawyer. There is no situation where you are required to pay anything upfront for a loan. Why would you pay for money?
Any fees that accompany a student loan, whether it is private or federal, are never paid up front. This is a red flag that will always indicate that someone is trying to scam you.
Student Loan Lawyers Nashville TN
Avoiding student loan scams is as easy as knowing what to look for. If you are facing student loan debt and are looking for help, a certified and trusted student loan lawyer is your best resource.
McVay Law LLC in Nashville, TN are ready to help you handle your student loan debt and potentially lower your payments. Contact us today to set up a time to meet and get started toward settling your student loan debt.