To avoid student debt-relief scams, properly research the background of any prospective company offering a student debt-relief program, and look out for warning signs, especially if the firm requires an advanced payment for refinancing, recommends the Huffington Post. Moreover, be aware that the government offers free consolidation through qualifying lenders. Consider federal programs that aim to help borrowers with financial problems and reputable private lenders who offer refinancing options without out-of-pocket expenses.Continue Reading
When researching a prospective student debt-relief program provider, find out about the experiences and opinions of previous customers by doing an online search, suggests the Huffington Post. Stay away from shady companies that ask for upfront fees or offer dubious repayment terms.
Other warning signs indicating a fraudulent student debt-relief company include requiring a borrower to sign a contract immediately, asking for credit card information before explaining the firm's services and giving suspicious promises of fast debt cancellation or loan forgiveness, reports the Consumer Financial Protection Bureau. Additionally, steer clear of companies that request you to sign a third-party authorization or ask you to reveal your Federal Student Aid PIN, which allows them to manage your student loan directly.
Inform your student loan servicer to avoid sharing your student loan information to other people, advises the Consumer Financial Protection Bureau. Visit the Repay Student Debt page on the CFPB website to read useful recommendations on how to manage your debt appropriately.Learn more about Credit & Lending