Student Loan Debt Consolidation - It’s Free, That’s A Fact
Nashville, TN – February 15, 2017 – Have you seen online ads offering to help you have your student loans forgiven? Or maybe they offer to help you consolidate your loans for a small fee? Existing student loan debt is well over a trillion dollars and many former students are looking for help managing their debt. One way to do that is by consolidating existing loans into a Direct Consolidation Loan, which results in a single monthly payment instead of multiple payments to multiple servicers.
Some student loan debt relief companies claim to offer assistance to students about consolidating their loans and learning if they qualify for a relief program. However, many of these companies provide services of unclear value. Some of these companies even ask students to provide their Federal Student Aid (FSA) ID, which puts them at risk of identity theft. FSA IDs should not be shared with anyone.
According to the U.S. Department of Education, if you took out federal student loans to pay for college you never have to pay to get help managing your student loan debt, the Department of Education offers assistance for free. If you see an ad from a debt relief company offering to help you with your student loans for a fee, walk away. Some companies charge as much as $999 at start-up, or $39 a month over the life of the loan for their services.
The Consumer Financial Protection Bureau states paying a student loan relief company money to relieve debt is not the best choice because;
The US Department of Education offers many tips to individuals with outstanding student loans to help them determine whether loan consolidation is right for them. From there, BBB offers some additional tips to consumers before seeking student loan consolidation assistance:
If borrowers feel they have been misled by a company offering assistance consolidating their student loans, they should file complaints at bbb.org, their state Attorney General’s office and the Consumer Financial Protection Bureau (consumerprotection.gov).
ABOUT the BBB
For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2016, people turned to BBB more than 224 million times for BBB Business Reviews on more than 5.3 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org.
There are over 100 local, independent BBBs across the United States, Canada and Mexico, including BBB Serving Middle TN and Southern KY, which was founded in 1961 and serves 38 counties in Middle TN and 7 in Southern KY.