Due to the recent student loan government proposals and new tax proposals, there has been an increase in Student Loan Debt Relief Companies. These companies are calling individuals with incorrect information and program ending threats that are not true. This is why we are giving the alert on possible student loan repayment scams. Both the Department of Education and the Federal Trade Commission are looking into these companies.
Here are some examples of the false claims made in these communications:
- “Act immediately to qualify for student loan forgiveness before the program is discontinued.”
- “You are now eligible to receive benefits from a recent law that has passed regarding federal student loans, including total forgiveness in some circumstances. Federal student loanprograms may change. Please call within 30 days of receiving this notice.”
- “Your student loans may qualify for complete discharge. Enrollments are first come, first served.”
- “Student alerts: Your student loan is flagged for forgiveness pending verification. Call now!”
Please make your clients and friends aware of these false claims. Borrowers should contact their federal loan servicer before making any decisions. As we had mentioned in an earlier article, Nerdwallet had listed over 130 companies that had significant complaints about student loan advice given.
At this point, the Department of Education has not made any final decisions on the new Federal Loan repayment options and forgiveness programs.