Avoid being scammed in the face of despair of paying a student loan.

Student loan with debt

Student loan with debt

You have probably seen ads or have been contacted by companies that promise to help you.  Anxiety and nerves can be overwhelming, and it is even more uncontrollable, when you have a debt that is difficult to pay.

How to detect scammers

How to detect scammers

  • They charge a fee in advance, which is totally illegal.
  • Any type of fee for paperwork must be cashed out of a check or is already in full refund.
  • They offer you a very tempting interest rate, in exchange for charging in advance from 1 to 5 of the total balance.
  • They charge for trying to consolidate, a service offered by the education department for free.
  • If the company claims that it can have its debt immediately forgiven or canceled.
  • If they claim that they have a relationship with the Federal Government or try to convince them that it is somehow related to it.
  • Ask them to give them their student loan PIN.
  • The company offers you a service in which you pay the company instead of the administrator of your student loans.
  • Your ads appear constantly, in your Facebook feed or in advertisements.
  • They offer you to negotiate with your lender on your behalf and they do not.
  • They promise total forgiveness of student debt, an immediate alert as this is practically impossible.

Seek help from a credit specialist, there are very reliable and free advice.

Recommendations to avoid being scammed

Under no circumstances do you pay anything in advance, it is more in case the refinancing is a completely free service.  At all times deal directly with the lender. Make sure the loan is under federal student aid, through its website.  Be jealous with your information, do not give anyone personal information or passwords, read everything before signing.

No one can promise you a total loan condemnation. It will be only the scammers will tell you to stop paying off your student loans.

In case of being scammed:

  • The only way to apply for federal aid is through FAFSA, Free Application for Federal Student Aid.
  • The application is free. You must complete the FAFSA form at fafsa.gov every year you are in college or vocational school.
  • In addition, many states use the data on their FAFSA form to determine their eligibility for state or university aid.
  • If you want to know how the credit works so that it impacts your life in a positive way, check this DVD in the finance store here

You will use your FSA ID (created by yourself, username and password) to:

  • Enter the Federal Student Aid system.
  • complete the FAFSA form.
  • Legally sign your student aid documents.

Do not share your FSA ID with anyone else.

There will be those who want to use your FSA ID to log into your account and take control of your personal information.

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