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Student Loan Consolidation Scams and Options for the Actual Help

student loan consolidation

We all wish for a successful and stress-free college career, but as we all know, this comes with a cost. The main concern that crosses a student’s mind when enrolling in a university is “how am I going to pay it off?” That’s where student loans step in; being the best form of financial aid to access higher education. Given America’s economic situation, there are over 45 million borrowers for student loans. Student loan consolidation is a helpful tool for every undergraduate student to merge their credits and manage them easily. Consolidation can change the terms of loan contracts and decrease the monthly payments, so every student is going to be interested in this option at some point in their college carrier.

With this said, more and more student loan consolidation scams are emerging in the public eye. With hard to resist offers, promises and insanely low fees and payments, it is easy for everyone to fall victim to these scams.

In this article, we will take a closer look at student consolidation scams, how to spot them and offer options for the actual help.


How People End Up Choosing a Scam Student Loan Consolidation?

student loan consolidation

From all the college students that graduated in 2018, 69%  took out student loans, and they graduated with an average debt of almost 30,000 dollars (including both private and federal debt).

Stats show that Americans are 1.56 trillion dollars in student loan debt spread out among 45 million users. That’s about 521 billion dollars more than the total US credit card debt.

This information rapidly caught people’s attention and at the same time, their concerns. The lack of money or the presence of debt in someone’s life is a potential anxiety trigger. That’s why, when dealing with student loans, people are always searching for more beneficial options. Student consolidation is one of them. But how can we know that we chose the real thing or just a scam?


Getting Help For Student Loan Debt

Student loan consolidation and student loan debt, in general, are a very stressful business. Just thinking of the mass of paperwork you need to fill out and keep track of, makes you want to shout for help.

You can see a lot of advertisers from agencies stating they can help you with your loans. Ads spread out on social media like Facebook or Instagram or even receiving them in your email inbox. These companies can show you attractive offers that might help you with your student loan. This type of promises can easily make you want to contact them or register immediately.

In this case, people should remember that paying someone else to deal with your student debt is not mandatory. Everyone is allowed to choose whether they want to deal with it by themselves or hire a professional. A few reasons are supporting this statement. First of all, signing up for repayment programs is free of charge if you benefit from a federal student loan. Second of all, debt relief companies do not have the right to negotiate with the national student loan creditor or to set different terms and conditions.


The Student Loan Consolidation Scam

student loan consolidation

The Student Loan Consolidation Scam is one of the most common scams, making victims every year. The company you reached for will charge a consolidation fee, without doing anything. This fee goes by different names as well. Some scam agencies will call it a processing fee or an administrative fee. Keep in mind that federal student loans don’t charge any fees. As for private loans, this kind of lenders can offer you a refinancing option for your private loans, federal loans or both. In the process, the scam company will continuously reassure you that everything is going great. The next step that will likely follow is the loss of contact and a bank account decrease. No matter how many times you call or text, no one will answer you and you will never get your money back.

In some cases, the faulted companies can consolidate your private loans, if you have any. In this case, this action will make things worse for you. You can end up having a hugely increased interest rate and owing more money to the government.

The last trick these scam agencies will try on you is to sign you up for the federal consolidation program. If this happens to you, shut down the process immediately! They are scamming you.

Applying for student loan consolidation programs provided by the state is free of charge.


How to Avoid Consolidation Scams

scams and options

When dealing with a student loan and student loan consolidation, you should keep track of a couple of things. Maintaining a good credit score and making sure your money is safe and under check should be your top priorities. Therefore, here are a few tips for avoiding student loan consolidation scams:

If you receive calls from companies trying to consolidate your student loans, do not engage in the conversation and hang up. If you want to consolidate your student loans, pick an authorised company or lender, that will offer you the help you need and will assist you through the whole process.

Before agreeing to any proposals, ask for information.  Contacts like the companies name, their address and phone number are handy. You can search for this company online and do some research about their services. Most scam companies will offer you false information or end the call.

Do not send money to any company asking for additional fees or service taxes. Wiring money to these companies means losing them for good.

Lastly, always speak to your loan provider. Authorised organisations can help you track down a scam and offer guidance. If you receive a call from an agency offering student loan consolidation solutions, check with your provider first. If the loan provider does not work with the company calling you, there are high chances that you are involved in a scam.


Sometimes It is Just Bad Service

student loan consolidation

This situation happened to everyone at least once: going to a restaurant and being assisted by a clumsy waiter. We all complained, and after all, we called it bad service. The same thing can happen when talking to a student loan consolidation company.

You might think it is a scam when, in fact, you are dealing with poor customer service. Untrained or unprofessional employees can make you feel that something shady is going on. A loss of paperwork, low communication skills or just a bad attitude can be some of the examples.

To make sure whether you are dealing with lousy service or a scam, always ask for information and do your research. Responsible student loan consolidation companies will offer you the best solutions in a positive, friendly approach.


About Student Loan Resolved

If you are searching for help regarding student loan consolidation, Student Loan Resolved is the best option. Offering efficient solutions and back-to-back support, this company will make you debt-free in no time. You don’t have to worry about scams anymore, because Student Loan Resolved is a safe, law-abiding company, that puts their clients first. Get a free assessment today or visit the website for more solutions and posts about student loan debts and student loan consolidation.