A lot of us have student loans – and some of us have trouble paying them every month. Some companies claim to resolve that issue by saying they can help you pay them down quicker, cheaper or get them forgiven altogether. Be cautious – some of these companies are running scams.
Here are some tips to avoid student loan repayment scams:
- Never pay an upfront fee. It’s illegal for companies to charge you in advance before helping you to reduce or get rid of your student loan debt. Companies that make you pay upfront might give you no help and not give your money back.
- Only scammers promise fast loan forgiveness. Before they know your situation, scammers might say they can quickly get rid of your loans through a loan forgiveness program. But they can’t.
- A Department of Education seal doesn’t mean it’s legit. Scammers use official-looking names and logos and say they have special access to certain federal programs. They don’t.
- Don’t share your Federal Student Aid (FSA) ID with anyone. Scammers could use it to take control of your personal financial aid information on U.S. Department of Education websites.
Last month, the FTC announced a lawsuit against American Financial Benefits Center (AFBC), Financial Education Benefits Center (FEBC), AmeriTech Financial, and Brandon Demond Frere as part of its crackdown against unlawful student loan debt relief practices, Operation Game of Loans. The FTC alleges that the companies charged illegal, upfront fees and failed to deliver on their promises to enroll people into a government program that they claimed would permanently lower monthly loan payments or result in total loan forgiveness.
The FTC also alleges the companies charged a monthly fee for the life of the loan (typically 10-25 years) and represented that the fee would go towards the student loan balance. But it didn’t.
You don’t have to pay for help with your student loans. There’s nothing a company can do for you that you cannot do yourself for free: federal borrowers can start with StudentAid.gov/repay; private borrowers can start by talking with their loan servicer.
Spotted a scam? Let us know about it.
In reply to I signed up with a company by dawn.pearlstein528
You can report this to the FTC at www.FTC.gov/Complaint and to the Consumer Financial Protection Bureau.
In reply to I signed up with American by Christy84
In reply to Daily calls from "Federal by Annoyed
You can help law enforcement by reporting the calls to the FTC at www.FTC.gov/Complaint. The information you give goes into a secure database that the FTC and other law enforcement agencies use for investigations.
The messages you put here on the blog don't go into the law enforcement database.
In reply to Received a call allegedly by Sharky999
In reply to I have a nurse on my staff by R13cbb
She can file a complaint with the FTC at www.FTC.gov/Complaint and her state Attorney General.
In reply to We continuously receive by D L Hndrx
In reply to We continuously receive by D L Hndrx
In reply to We continuously receive by D L Hndrx
In reply to We continuously receive by D L Hndrx
In reply to I received two scam phone by Anonymous
In reply to Same. The number they called by Anonymous
In reply to Does anyone know the status by Lisa D
The FTC announced the lawsuit against American Financial Benefits Center (AFBC), Financial Education Benefits Center (FEBC), AmeriTech Financial, and Brandon Demond Frere in February 2018.
The case is still going on. The businesses are not operating.
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