One of the most frustrating questions I get everyday (seriously, everyday), from readers is: Is this company that’s saying they want to help me with my student loan debt a scam? Is this a student loan consolidation scam or legit company to work with?
My answer? If you’re even asking me, it means you went online, searched the company’s name, or found my article on Student Loan Scams, and it raised a big red flag. That should tell you something right there.
There are many scams out there, and the CFPB, along with multiple government agencies, have issued warnings to be on the lookout. However, there are some good players out there as well. It’s important to do your homework and know what to look for so that you can make a smart choice.
Note: You never need to pay a third-party company to help you with your student loans. You can always do it yourself by going online to StudentLoans.gov or calling your loan servicer. If you choose to pay a third party company, make sure you read this article in-depth and fully understand what you’re paying for before moving forward.
If you’re not quite sure where to start or what to do, consider a DIY student loan help service like LoanBuddy. It will tell you the lowest repayment plan and if you qualify for loan forgiveness, as well as help you complete the paperwork you need. Check out LoanBuddy here >>
Is It A Scam, Unnecessary, Or Do You Know What You’re Getting?
First, I want to clearly distinguish between scam companies, companies who are charging you for unnecessary services, and companies who are up front about charging you for a service you’re interested in.
Scam companies are student loan assistance companies who charge you for a service and then never do it, or don’t do it 100%. For example, the firm might advertise ‘student loan forgiveness’ or ‘lower student loan payments.’ They charge you hundreds of dollars and say ‘they’ can do it but in reality don’t actually do anything at all. You pay the money, the firm does nothing at all and is shut down 6 months later. This is a scam.
However, there are legitimate student loan assistance companies that simply charge you for services that you can go do yourself for free. For example, they might advertise student loan consolidation, and charge you to consolidate your student loans – even if you don’t need a consolidation, or a consolidation is not right for your situation based on the programs available you! This is what’s known as a student loan consolidation scam.
But, remember, student loan consolidation is a free service offered by the Department of Education and you can sign up and do it yourself for at StudentLoan.gov. If you did use a company, you would need to make sure that they know (but this is what you would pay them to already know!) which loans, if any, need to be consolidated. It is possible to make your situation worse by consolidating!
Just like doing your taxes, it could make sense to do it yourself, or it could make sense to pay a CPA. Like taxes though, you need to make sure you have the right CPA or you could end up with problems you didn’t have before. You need to decide for yourself. Just realize that you have options. If you do decide that you don’t want to deal with it and paying someone makes more sense for you, you can see some of our recommendation at the bottom of this article.
For student loan consolidation, read out guide on The Right Way To Do Student Loan Consolidation.
The Most Common Student Loan Scams
There are several different types of student loan scams, but the most common is a variation of the advance fee scam. This is where you pay for a service (in this case something to do with your student loans) but the company never does any work or produces any results for you.
When it comes to student loans, the scam typically unfolds something like this. The company is offering student loan forgiveness, a lower payment, or consolidation. In exchange for doing it for you, you just have to make 3-6 payments of $199. Once they’ve received all your payments, you’ll be set, right? In the meantime, all they will do is set your loan on forbearance so you won’t have to make a student loan payment. This is not enough.
The problem is, these scams usually involve the company taking your money, your student loans remain in forbearance for months or years, and the borrower finds out that the forbearance has expired and that nothing was done.
If a company is going to put your loans into forbearance, make sure you follow up and know exactly why, for how long, and any action that is being required from you during the process to keep thing progressing. Forbearances should only used if absolutely necessary and only for a very limited time as a buffer while the borrower is being submitted and approved for the different programs available to them to enhance their loan situation.
Don’t think this kind of thing is happening? It’s gotten so bad that the Consumer Finance Protection Bureau has asked Google to step in and filter results around student loan debt and prevent advertisers from advertising topics like Obama Student Loan Forgiveness.
Dealing With Student Loan Relief Fees
Remember, student loan consolidation can be done for free at StudentLoans.gov. Paying a fee for help with your student loans may not be necessary for you, just like you may want to do your own taxes yourself, but just paying a service in itself for what they offer and fulfill is not a scam. It’s only a scam if you pay for a service and the company does not do what you paid them for or if they mislead you on the services you paid them for. Working with a company, like the ones recommended below, can be useful if you don’t want to do it yourself, or would prefer it to be done by true professionals who can ensure the loans are consolidated and managed properly.
If you’re going to pay a company to help you with your loans, you should know specifically what you’re paying them for. You are paying them to help you decide what the best repayment strategy are, and which forgiveness options are available for YOUR student loan debt, then to manage and process the paperwork on your behalf, on time, and in the correct order. There are very few companies that exist today that are successful at this process due to the dynamic complexities currently impacting the student loan industry – there are countless loan types, programs, and qualifications that make the entire process difficult.
A legit company will charge you an amount, but should put that amount into a special third party account and only get paid when they have successfully completed the work. Since paperwork processing and submitting takes time, it could be a 3-6 month process, or longer. As such, while you might pay something up front, it should be clear to you that this money is going into an third party account and you would get it back if the work is not completed.
Big Student Loan Scam Red Flags
If you have this happen to you, it’s a big giveaway that you are likely going to be scammed, or at least asked to pay for something you are not getting.
Forbearance – Putting your loans into forbearance should only be used for very specific situations and on a very ‘as needed’ basis – it’s not a blanket approach and not the solution. If your loans are going into forbearance, make sure you understand why.
Stop Making Your Student Loan Payments – No company should ever tell you explicitly to not make your student loan payments. Always pay the minimum on your statement.
Pay Us, Not Them, We’ll Make Your Payments For You – big red flag, just shady having someone else make payments on your behalf. What are they hiding from you?
Did They Contact You Using An Auto-Dial System (or Robo-Dialer)? – If they contacted you and you ‘pressed #1’ to be connected, this is a big red flag and the company is most likely breaking the law. Run! Specifically, be aware of marketing pieces with government seals that have your financial information splattered all over it. Example would be, ‘Your student loan of $56,987 has been Pre-Qualified to be forgiven!’ If you see this, run!
Any Company Claiming To Be Working With The Department Of Education – None of these companies work with the Department of Education, and the Department of Education will never call you. All correspondence with them will be via mail, so don’t fall for anyone telling you this.
How To Research The Company
The best way to protect yourself is to research the company before you do business with them. There are a few places to start.
First, look on the basic list of known companies to watch out for. We call out several companies that have been known to charge for services that are not needed on this article about Not Paying For Student Loan Consolidation. Also check out our Student Loan Scams forum to see if any other readers are discussing the company that has solicited you.
Second, check and see if they are just a document processing company where you are still going to have to do the work yourself at the end of the day. Avoid document processing companies, as these companies don’t provide any financial help, are not licensed or bonded, and simply charge you large amounts of money to do paperwork that may not even be accurate, and which you can easily do yourself.
To know for sure, they must list it on their website or disclaimer. Many student loan companies opt for this because the other option is to be a bonafide licensed debt relief company (which provides advice), but that requires special licensing in most states.
Here’s an example of the fine print where a company admits to not providing financial advice and only act as a document processor:
Finally, trust your instincts. Student loans are very regulated and all of the possible ways to get help are specifically outlined by the Department of Education. There isn’t anything over the top special that any company can do for you, except a little education and convenience. If something sounds too good to be true, it most likely is.
Where To Get Real Help
If you want to get help for your student loans, make sure you’re taking the smart steps forward. The first and best resource available is StudentLoans.gov. This is the government’s website for student loans, and it’s where you can begin to educate yourself on everything from loan consolidation to repayment plans.
Next, you can call your student loan servicing company and see if they can assist you. If you feel like you’re not getting anywhere with your loan servicer, you can file a complaint with the Consumer Finance Protect Bureau.
Third, as a last resort, you can consider enlisting the help of a student loan lawyer to look over your situation and see if they can help. Learn more about finding a student loan lawyer here.
Next, look at using a DIY student loan help service like LoanBuddy. LoanBuddy will walk you through exactly what you need to do with your student loans to lower your monthly payment or find forgiveness programs you may be eligible for. Check out LoanBuddy here >>
You can also consider hiring a CFA to help you with your student loans. We recommend The Student Loan Planner to help you put together a solid financial plan for your student loan debt. Check out The Student Loan Planner here.
If you have private student loans, refinancing is typically your best option (As a reminder – we don’t usually think it’s a good idea to refinance Federal loans). We recommend Credible to compare different lenders and find the best rate and payment for you. It’s free to compare and only takes about 2 minutes. As a bonus, College Investor readers will get up to a $750 bonus when they refinance through Credible!
Beyond that, post a question on our Student Loan Debt forum, where myself or a member of the community will answer your question.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
leslie says
Is there anything I can do once I’ve been scammed by one of those sights?
Robert Farrington says
What happened?
Whitney K says
But what do I do now that they’ve got me on their hook: I’ve paid the fee and signed their forms. But it’s EXACTLY as you describe! 🙁
What do you advise??
Robert Farrington says
Calling and cancelling. Then calling your lender and making sure that the power of attorney is revoked. Then just work directly with your lender.
Sony says
Do you know anything about this company:
National Student Aid Care
523 N Grand Ave Santa Ana CA 92701
nsa-care.us
A lot of red flags if you ask me!
Robert Farrington says
Never heard of them, but follow the guide and trust your gut. Remember, in general, you can do everything with your Federal loans for free at StudentLoans.gov
Amyie says
The company told me I couldn’t cancel my agreement I signed. I haven’t paid them anything, and I just signed it yesterday. The comany is Premier Student loan center. Please help
Robert Farrington says
You need you read your agreement and see what the terms are. Most have a cancellation policy or something about it being cancelled if you don’t pay.
Norma says
I got in contact with Optimus.com is this legitmate school loan forgivness
Robert Farrington says
I don’t know what you mean by “legitimate”? The only student loan forgiveness programs can be found here: Every Student Loan Forgiveness Program Available.
It sounds like they are a third-party company offering help for a fee?
Hannah Smith says
I think I have been scammed too! I just signed up for one before reading your article and dont know how to get out!
Robert Farrington says
You need to call and cancel, then call your lender.
Cameron says
What if you called to cancel, they insist on you paying the fees bc they claim the process had begun, even if it wasn’t complete and threaten to send you to collections? The process was never complete, I received an email the day After I canceled stating that they had submitted documents to The Dept of Ed (which they confirmed wasn’t true). The representatives are very rude and insist that they have contacted their attorney and this will be sent to collections:/ What are my options?
Robert Farrington says
It’s a tough call on what to do. You have to make a choice if you want to fight it or not. Personally, I would likely get confirmation that they didn’t do the work from the Department of Education, and dispute the charge on my credit card. But you do run the risk of them sending it to collections, in which case you’d have to dispute it more, and fight to have it removed from your credit report.
There’s no easy answer and it all really depends on what you want to do. I do suggest you also contact your state’s attorney general, the CFPB, and the Department of Education.
Jonathan Delgado says
Hey have you heard of time mark solutions
Robert Farrington says
No, we have not. Make sure you use the guidance in the article to evaluate a company before moving forward with them.
Furthermore, remember, anything with your Federal student loans can be done for free at StudentLoans.gov.
Ursula says
Did they solve your problem?
Thom says
Before reading your article, I’ve signed up with The Student Loan Project almost a year ago so I’m into them pretty deep. I paid their initial fee and pay them monthly. It looks like they found a lender that purchased my original consolidated loan and created a new loan. I’m stuck and need help. How can I straighten out this situation
Robert Farrington says
Well if they’ve done the work for you it’s not a scam, but simply something you should have never paid for. Now you need to figure out where your loan is, what type of loan you have, and simply work with the lender.
Andrea says
I have been scammed twice now! is there any way to get that money paid to these companies back!
Walton Seaton says
The Federal Document Assistance Center is a Student Loans Scam. I have spoke with Esly Roman, Luis Castillo, Cesar Roman, Eric Pintos, Yvonne Marin, Andrea Martinez, and Cynthia Lopez-Luna. Each one of these associates has scammed social security numbers, bank information, and documents. Do not trust them! Reported to the Credit Bureau, Identity Theft, and BBB.
Lanea says
I have been scammed as well! What is the next best step??
Lanea says
Is there a way to keep them from using our information or selling it?
Jacynda S Macaraig says
I had mail from Federal Document Assistance Center as well
Jenny says
Has anyone heard of an company names nationwide school loan services! They want 138.08 a month for the next 5 months and was promised a school forgiveness program! Help! Not sure if I was just scamed!
Robert Farrington says
Read the article above – you don’t need to pay for it. You can do it for yourself for free on StudentLoans.gov.
Rich says
Have you ever heard of start fresh financial llc. They are wanting to set my daughter up in the Obama forgiveness plan for her student loans
Robert Farrington says
There is no such thing as “Obama student loan forgiveness”. Read more here: Obama Student Loan Forgiveness Programs.
Kathy says
I think I’ve been scammed by this same company, too. Two years ago, I was contacted by Student Loan Processing. I assumed they were paying the loan and all was okay for about a year. Then suddenly they stopped taking money from my bank account. I’d say that has been going on for about a year also. I reached out to them on at least three occasions because I did not want to be in default. They assured me they were in the middle of some kind of recertification and would contact me as soon as that process was complete. They contacted me alright with two days notice and a payment that was triple what I was paying before. I was able to get my bank to do a stop payment on them and then the company claimed that would not do a withdrawal until we talked. But I found out this morning, they attempted to hit my bank account three different times with three different amounts. I have now gone back to studentloans.gov and am hoping to figure this all out today.
Amie says
I just found out today after three years of paying Start Fresh that I was scammed. I already contacted the FTC and the BBB to file a complaint. I also tried to call Start Fresh and they of course had no one that could take my call. They wanted a return phone number which I refused to give them. These people are disgusting and need to be stopped. I don’t care if I get my money back I just don’t want other people to get fooled either. I feel so stupid right now but they got me out of desperation…..
JB says
Are forgiveness programs in effect for someone who has been scammed by a financial company who is now out of business!
Robert Farrington says
We would need more information to point you in the right direct, but maybe this article will help: Student Loan Forgiveness Programs.
Mary Ann Fallon says
Did you ever hear of Docuprep Center out of California. I started to change my student loan with this company. I was set up through http://www.nslds.ed.gov. Everything sounded good my loan was just going to be a fixed rate. However, when they said there was a process fee of $799 and they would put me in forbearance for three months I got nervous and actually told the person on the phone I was worried it was a scam. I didn’t pay any monies and I said I would call her back. If this is a scam they have some information, no bank account information. Can you advise me. Thank you in advance.
Robert Farrington says
You don’t have to pay for student loan consolidation. Read the article above!
If you want to lower your interest rate and you have Federal loans, your only option is to refinance into private loans. That doesn’t always make sense. Are you looking for lower payments? Forgiveness? What are you looking to do?
Amber says
Have you found out about the company docuprep? I signed up as well and Im having second thought, they have info including my card number. which I will be changing after work
Kyla says
I was also contacted by docuprep. The lady I talked to was named Nicole and she told me
That I would only have to pay a one time fee of 269.00 dollars and that after that my loans would all be forgiven… is there such a thing as this? It just sounds too good to be true to me. I was straight up with her, emailed her and asked her if it was a scam, she replied with “yes darling it will work you will sin off on two guarantees, it will save you a lot of money” ??? I’m so confused.
Robert Farrington says
Read the red flags in the article above. Then decide for yourself.
Susan says
I want to know if this document service center was scam after all. I received a call as well. What can be done about this?
InNeedOfHelp says
Did anyone ever find out about DucoPrep? I received a call from them also and after sending them my information I’m having second thoughts.
Susan Allen says
I was speaking to a lady from studentresourceusa.gov, and she was explaining IBR to me and how my federal loans qualify will eventually qualify for PSLF, but my Private loans will not. She mentioned I may be able to contact Federal Loan Servicing to see if they can buy out my private loans, so that when my federal loans are forgiven, these private loans will also be forgiven. Have you heard of this? She wasn’t asking for any of my money etc, and none of my personal information. She was simply explaining options to me.
Robert Farrington says
They won’t buy out your private loans – FedLoan is a private government contractor that services Federal loans. They won’t touch your existing private loans.
Amanda says
Has anyone heard of a company called FedLoanHelp.org? I ended up signing their agree to terms document and power of attorney but I’m pretty sure its something I don’t want to get into. They told me the process isn’t started yet but I’m not sure what I can do to stop it.
Robert Farrington says
Please don’t get into it. Simply call them and cancel, and revoke any POA you signed. Then call your lender and make sure everything is fine with them still.
John Carroll says
My son saw a facebook post and called First Student Aid about debt foregiveness for his former Sallie Mae loan for the Art Institute. The loan is owned by USA Funds, Inc. I can’t even find First Student Aid on the BBB. No, he didn’t sign up, yet.
Jessica says
Mine started with a hold placed on my taxes. I called the department of education number it gave and got a recording saying gc services now had my account I needed to contact them. So I did and I set up a rehabilitation program and asked for the hold to be removed he said he couldn’t until I made four payments and would have to apply for certification. I haven’t signed anything yet are they legit? Then out of the blue today I get a call about a private loan I supposedly have which I never reneged any private loan as mine credit was horrible and always had federal grants and so on. It was called FAMS said they were working with navient. Would offer me a settlement for 250 down and spread the rest of settlement out over 11 months.
Robert Farrington says
For your Federal loan, it is in default. Go to myeddebt.com and you can check to see who owns your loan. It could very well be that company.
Your tax return will continue to be garnished until you fully rehabilitate your loan, which takes a set number of payments.
As for the “private” loan, check your credit report and see what’s really on it. If you never took it out, you might need to speak to a student loan lawyer for recourse.
Rick says
I’m trying to find some information on a company called “Private School Loans Relief, LLC” but NO reviews and no listing for them at BBB
I’m very concerned, because they promised my son help with his Private Student Loan, claim they can reduce the amount he still owes by 50%, completely eliminate the interest, and his loan would be paid off in 3 and a half years (instead of 12 years he has left on his current payment plan with the lender). They haven’t asked for any money up front (yet), but this is one of those “sounds to good to be true” scenarios. This company says they’ll “settle” with the original lender (for 50% of the outstanding amount), take over the loan, and my son would then make payments to THEM instead of the lender, and that their lawyers would take care of any problems that the original lender might cause. So where is the “catch”? What’s in it for them if they really do this??? I’m very worried that this is a scam, and that my son will end up in default on his loan if he signs an agreement with this company and they don’t follow through on what they promise. And we definitely would not have the financial means to fight it out in court afterwards. 🙁
Robert Farrington says
You should be very worried. It is likely too good to be true.
A lot of people get burned dealing with these firms trying to get their student loan debt dismissed.
Make sure they don’t ever:
1. Ask you to stop making payments
2. Ask you to make payments to them
Both of these are big red flags that they are NOT trying to help you.
Most people don’t ever need to settle unless you’re struggling to get out of default, or you are being sued by your private lender.
If neither of these apply, all good lawyer can do is:
1. Validate that the debts are legitimate (which you likely know to be the case)
2. Validate that they haven’t violated any debt collection laws (which you could sue them for violating)
If you’re making payments and have no issues, then a this company and lawyers in general aren’t a good option.
Nicole santana says
I just got this call too. How did you deal with this?
Jared says
I saw a facebook post and called First Student Aid about Student Loan Forgivness, for his former Sallie Mae loan for the Art Institute. I signed up and paid before finding this article. What can I do to get my money back?
They just collected my last payment and have not done anything for me.
Robert Farrington says
Call them and cancel everything. If you paid via credit card, you can dispute the charges with your card company.
Dennis Brock says
I think fedloanhelp.org is a scam from what you’ve said here. I’m canceling everything and stopping the drafts on my bank account. I’ve already paid in about $400. Do you think I can get any of that back?
Dennis
Robert Farrington says
I would ask them for a refund and to stop doing anything for you. If you paid with credit card you could opt to dispute it through your card.
John says
Hi Brock, I worked for fedloanhelp.org and quit once I realized how shady Brian Pascal the owner is. A true scam and rip off. That $400 went straight into his pocket so he can drink beer and eat pizza all weekend. He’s a short, weird, fat ass! I’m sorry you got scammed!
Dan says
Brock,
Is this company in Orange County? If it’s the same Brian Pascal I am thinking of, he has had numerous fraudulent businesses over the years. What a shame. Hard working wife, beautiful children, but a true crook.
Alina says
I singed up today with United student loan assistance for loan forgiveness before I read your article. They called me and after checking all my information I was approved for $0 payment on my federal loan for 300 months if my income will not increase $100000. They already charge me $200 and going to charge another $200 in a month. I discussed it with my husband afterwords and he was surprised why they charge if it should be free. That is how I start research and find out your article. On the agreement says that I can cancel it anytime with 50% money refund. I already sent them email with my cancelation but they are already close. So, I don’t now if they will return money back if I canceled in a couple hours after signed up. What is your advice? Is it any chance to get money back?
Robert Farrington says
Definitely cancel everything and contact them. Change your passwords or PIN if you gave it to them. Report them to the Consumer Finance Protection Bureau. Finally I would personally dispute the charge on your credit card if they don’t refund you.
Amanda says
I have this company calling to help me with loan forgiveness. They are called student advocates llc, they said I could have a $0 monthly payment but want $585 to consolidate my loans. I told them I would call them back bc I felt really uneasy with them having my ssn and my work information. Have you heard of this company?
Robert Farrington says
Another user posted about them in our student loan forums.
You don’t ever have to pay a company to consolidate. Read the entire article and do it yourself for free.
Jodi Gatto says
Has anyone heard of Student Debt Consolidation, LLC. They keep calling me about federal and private student loan consolidation and reduced rates. Any advice.
Robert Farrington says
Yes, our continued advice is you don’t have to pay a third-party company for document preparation if you don’t want to. It’s super easy to do yourself. Learn and get educated about your debt.
George Brown says
I have a company that keeps calling me. They are calling me 3 times a day for the past 3 months, even weekends. I was able to get a receptionist to tell me that their company name is National Student Help Center, but when I found a company online with the same name, but it wasn’t who was calling me. I know your article is about how to identify the scammers, but do you have any idea how to get them to stop calling me?
Robert Farrington says
To get a telemarketer to stop calling you, you need to specifically say remove me and add me to your Do Not Call List. I’m notating this number and your company and if you call again I’ll report you to the FTC.
Jennifer C says
If they were a legitimate telemarketer, that would be good advice. The ‘National Student Help Center’ are nothing but scam artists–they call from spoofed phone numbers and their telemarketers are trained to hang up if you ask too many questions. They’re not going to honor any request to be put on any list.
Amy says
So two colleges that I attended closed down. I owe almost $70,000 for both schools. I saw a post on Facebook about student loan forgiveness for said schools. I called the number and spoke to a guy who said their company is PREMIER STUDENT AID. The guy looked up my loans and said I need to consolidate them because all my loans have 15 different apr’s. He also said his company is accredited through ASLFR and that the company is part of the federal aid and DOE. (From what I remember)
He looked into the program and said I qualify for a partial loan forgiveness (“pay program”) which is pay as you earn. He said I would have to pay $233 for three months to lock in the loan and for administration cost then my payment would be $45 for 240months, which is a total of $10,080.00. Then the $50,000 would be forgiven completely.
Do you think this might be a scam?
Robert Farrington says
The PAYE is not a scam – it’s a free program you simply call your lender to complete. What they guy sounds like he mislead you about is that you are paying $699 to the company to complete this paperwork for you. There is no “loan lock” or anything like that.
You simply call your lender or go online to StudentLoans.gov. Really simple and easy.
Daniel V says
I also signed up for this company. I owe 13000 in loans and they said with the 3 payments of 233 my debt will be brought down to 0.
Robert Farrington says
Ok, well you know you don’t need to pay $700 to do this now right? You can do it yourself for free at StudentLoans.gov.
Daniel V says
I didn’t know that. I will get on it asap. Thanks
Daniel V says
What would you recommend in order to remove a student loan for a Degree that is not state credited
Karissa says
Hi Robert,
I had a very similar “deal” offered by PREMIER STUDENT AID as Amy and after reading your suggestion to call my lender through StudentLoans.gov, they quoted me a different monthly rate ($500+/mo…much higher) than PREMIER ($15/mo + service fee). If PREMIER isn’t a scam, and I will only owe them $15/mo verses the $500+/mo through my current lender…then the “fee” they are charging is worth it. I would love your insight because I feel stuck!
Robert Farrington says
You have to ask both of them (Premier and your loan servicer) what they are offering you specifically – I can’t tell you what the difference is because you didn’t specify it. What repayment plan did your loan servicer recommend, and what did Premier say they were going to put you in or do with your loans?
Most likely, it was some type of income-based repayment plan. To calculate that, StudentLoans.gov pulls data from your tax return last year to assess what your payments might be under a specific plan. When you call your servicer, they will likely ask for your income or AGI as well to see what plans you might qualify for. If your income has changed substantially, you’ll use that current income, but StudentLoans.gov won’t be accurate unless you opt to NOT connect your IRS tax return and instead type in your income.
It’s always your call. All these companies do is process paperwork for you. We recommend you do the paperwork yourself and not pay a service fee. The numbers shouldn’t be different because the numbers are simply your income.
As a side note, the website for Premier Student Aid is no longer valid. It expired on 10/28/2016 according to GoDaddy. I’d be concerned about any business that does not having a working website.
Trish Kizer says
Has anyone heard of a company called Ameritech Financial? I got a yellow ‘final notice’ card in the mail to lower my monthly payments. They lowered my payments from $350/month to $207 for the first 11 months, and $118 after that for the next 20 years. They did not charge me anything up front or try to consolidate my loans, but I am still scared that it is a scam. Thanks!
Robert Farrington says
They did charge you. That difference of $207 to $118 for 11 months was their fee (which maybe they didn’t tell you). That means you paid them $979 to change your repayment plan to an income-based plan.
This isn’t a scam, you just paid them for a service.
Jes R says
This same company contacted me as well. However they say that after 10 years (120 payments) I only pay 17,000 and get the 92,000 forgiven. If I continue the way I pay now at 356 a month my 65,000 loan will be 110,000 by the time I finish my payments. Of course they have my dependents based on it and restructure your loan payment yearly. Start off for one month at 227 than twelve months for 207 than goes down to 149. Even though your being charged is it worth it to lower your payments and be forgiven that much money?
Robert Farrington says
No – because, once again, everything they are offering you is:
1. They are just paperwork processing companies
2. It sounds like they are signing you up for Public Service Loan Forgiveness and changing your repayment plan to IBR or PAYE, both of which you can do for free if you choose
Oh, and no, they don’t restructure your loan payment yearly… You have to send in a certification yearly based on your tax return and the government adjusts your payment to always be 10 to 15% of your discretionary income.
Remember, it’s always you choice. You can work with them or do it yourself. They aren’t a scam, you’re paying for a service.
jes says
Hey Robert,
Thank you for comments. You seem to be very informed on the matter. Could you point me in a direction of where I might be able to accomplish what they offer on my own? Thank you
Robert Farrington says
Easy – login to StudentLoans.gov (the official website by the government for your student loans), or call your lender directly.
Erick says
Hi, I have a question regarding the way that one of these third party services did my paperwork so I could qualify for lower monthly payments of $118 per month. It seems that when they submitted my paperwork they only used my income to lower my monthly payments when setting me up for a FSLF and Income Driven Loan but I’m married and filed joint taxes with my wife. I didn’t think that it was a scam because I knew that it was a service that I was paying for. This year my wife wanted to cut the middle man out and do it herself but when we got our new payments they skyrocketed to $735 a month. We then spoke with Fedloan and they told me that they are using both of our incomes. I called my 3rd party service and asked why they filed my paperwork only with my salary and they said that the student loans are only under my name. Does that sound legit to you? Should i just stay with them and go back to my low monthly payments? Just asking for a bit of advise since I have nowhere to turn too and all this has become so confusing with so many people getting their hands in the pot.
Robert Farrington says
You can only use you income IF you are on IBR or PAYE, you can file with just your income if you file your taxes married filing separately. You can read more here.
If you file your taxes married filing jointly (which you said you did), or you’re on RePAYE, you must use your AGI from your tax return unless your status or income has substantially changed. If your income has changed, you must still report both your incomes unless you plan on filing separately for the next year. You should read that above link, and maybe talk to a tax professional, first. It can increase your taxes, which might not offset the decrease in student loan payments.
This is spelled out pretty clearly on the Department of Education website.
J says
While dealing with Navient, they transferred me to National Student Loan Trust that is working to reduce my debt. Because I was sent to them via Navient, I have trusted them so far, however, I am concerned. They claim that since I am a state employee, my loans will be forgiven after 10 years of payments… This seems to good to be true.
Could you please advise?
Thanks
Robert Farrington says
Hi J – you are correct to be worried, but at the same time, PSLF is a legit program.
If you’re under the correct repayment plan, and work for 10 years in public service, you get your loans forgiven tax free.
We have a training course dedicated to PSLF because it’s awesome and you can DIY it all: PSLF Training Program.
Candice R. says
This is what the White House says (removed as of 2018).
Forgive Any Remaining Debt after 20 Years, or after 10 Years for Those in Public Service: Borrowers who take responsibility for their loans and make their monthly payments will see their remaining balance forgiven after 20 years of payments, reduced from 25 years in current law.
Public service workers – such as teachers, nurses, and those in military service – will see any remaining debt forgiven after 10 years.
Candice R. says
Has anyone heard of the Student Loan Counsel? They say they offer a Pay-As-You-Earn Plan that only counts your income, not your household income?
Robert Farrington says
Hi Candice. I’ve never heard of them, but follow the guidelines above. You should NEVER pay them for help setting up PAYE.
Realize that PAYE is a free government plan, and how they calculate your income is based on your tax returns. This company will likely ask you to file your taxes married-filing-seperately. This will allow your loan payment to be based on just your income, not your household income. HOWEVER (there’s always a however), you will pay more taxes this way.
You need to really do that math and see if the lower payment is more than the higher taxes. In some cases it is, in others it isn’t.
Liz says
Simmons & Miller LLC said I was approved for $78 a month but had to pay $165 for the first three months and took all my info down, social, student loan sign ins, credit card, and more. What do I do? I haven’t paid the fees yet but I signed documents and gave my info to them… Help? They aren’t on BBB either and I can’t find any reviews on them at all.
Robert Farrington says
I would not work with anyone and simply call your lender. While that small difference for three months only adds up to $261, that $261 is something you shouldn’t have to pay. Do it for free on StudentLoans.gov or by calling your lender.
Sarah says
I wish I had read this article last year. I’m currently in a contract with Simmons and Miller LLC. When I signed and paid the fees everything went smoothly, answered all my questions, etc. However, I had to contact them to renew my income based repayment program, and I’m not happy with their current service. How can I get out of contract?
Robert Farrington says
Read the contract and stipulations. Most simply state if you stop making payments it’s void. You can easily re-certify your income without paying.
Liv says
I also made the mistake of dealing with Simmons and Miller. When I first signed up for the program they were so nice and it seemed like a great program, however after doing my research they were charging a crazy amount. I think its funny that they wanted to charge above a completely different amount then they charged me it was $100 down (which they took before they even had my tax information) and then $298 for three months after that. In total I would be paying $1000 !!! Being naive I signed the contract, but they could not access my tax information(apparently they can only try twice) I took this as a red flag, and after talking to others I knew I had to cancel it. The contract clearly states that after 10 days if they do not have all the documents it is not valid. Well I called and called they even told me I could send my pay stubs, but never got back with me on were to send any of this information. I talked to 3 different people wanting to cancel and they kept saying I could not and saying someone else would call me back. I canceled the card they had on file and finally after calling them literally every day for weeks they called me ( on the day $298 was due)! I was very polite and simply told the man I wanted to cancel, he would not even let me really talk , and was honestly yelling at me…I could not believe how rude he was. He claimed I never called, he also said I could not cancel, until I told him that I can and he did not even have all my documents. The whole time he was only worried about the $1000, he kept asking if it was the fee and that they could break up the payments more, I just told him nicely that I would like to cancel, that is when he began yelling, which resulted in him hanging up on me. I would just advise anyone please please do your research and do not go through this company.
Ruth says
Simmons & Miller contacted me about helping me set up an affordable payment plan on my student loans. I paid their fee (495.00) and for the first couple phone calls it seemed they were going to do what I was paying them to do. Then suddenly they stopped calling and I wasn’t able to get ahold of them. My student loans went from default to ready for garnishment! I finally talked to a representative of the Dept of Education and set up payments directly with them. I then contacted Simmons & Miller and told them I was extremely dissatisfied with their service and I wanted my money back since they had not fulfilled their end of the bargain. The return email I got was that it was “way past the time for cancellation”. Once I emailed back again and assured this gentleman that I would be contacting not only the better business bureau, but also the attorney general, I got a call the following morning. He proceeded to tell me they had contacted me multiple times-no messages or missed calls-and he even went so far as to tell me it was my fault they went to garnishment. He didn’t let me speak and repeatedly spoke over me. He said he was going to have someone call me the next morning to get some information so he could look into the matter further-no phone call, no more contact of any kind. Might not do me any good, but I did follow through and contact the bbb and attorney general in their home state.
JESS says
Hello,
Have anybody heard of Western Benefits Group? I called and they talked a good game and told me that I would need to pay $499 for fees and then I will be able to pay $35 a month for the next 240 months if my income do not change. Also, after 2 years of consistent payments it would drop to $19.99 a month. Is this a scam?
Robert Farrington says
Sounds like they are just signing you up for IBR – a free student loan repayment program you can do yourself by calling your lender or going online to StudentLoans.gov.
So, do you want to spend 30 minutes and do it for free, or do you want to spend 30 minutes on the phone with them, and spend $859 over the 2 years? Because your true payment on the program is like just the $20 per month.
S.B says
Has anyone ever heard of Go2 Finance and David Mize. I have spoken to one of their representatives who said they would be able to help with my private loans. Basically they would be dealing with my lender. I would not be making payments to my lender once they take over my case and I would be making a monthly payment to them. I would end up paying approximately 35% of my total loans owed over a 6 years period. Their grounds are that the loan company have been violating lending laws and they will seek to have my loans dismissed on that premise.
Robert Farrington says
There is a long discussion thread about this company in the student loan forum here.
Monica Dobbs says
Hello:
I just signed papers with STUDENT FINANCIAL HELP CENTER, they are charging me 139.00 per month for 5 months and then they told me that I only have to pay $35.00 a month for 220 months to pay my student loans. I am not in default of my student loans in fact i’m still attending school. They just told me that because I work for a non-for profit I can be forgiving of payments, they said that they can consolidate my student loans and as they were on the phone with me they told me to go my computer and click on a link they send to my email from fafsa.gov and they got all my loans information. I thought that because they had access to the fafsa web and were able to open all my student loans they are a real company, but after reading all of this scams that people are reporting I am confused of what to do.
Robert Farrington says
Based on what you say in your comment, here is my opinion.
First, you’re paying them $695 directly for them to just change your repayment plan to IBR. You can do that for free by calling your own lender or going online to studentloans.gov. But, you’re still in school, so you should be in deferment and not paying at all.
Second, if you are going to work full time for a non-profit, you get Public Service Loan Forgiveness (PSLF). This is another FREE program you can sign up for with your lender or online at studentloans.gov.
Either way, you shouldn’t pay this company for help. You can do it all yourself for free – when you’re done with school take a couple hours and figure it out.
A. Fran says
what about premier student loan center? have you heard of them? I called them because I saw them in the news. They apparently help you with your private loans, they get a lawyer to handle your case and they said they have had loans dismissed 100% or 80% of it. the only thing is, you pay the lawyer 20% of your student loan for doing legal stuff for you. do you think they are a scam?
Robert Farrington says
I’ve never heard of them, but be very careful in working with any law firm. Make sure that you ask them exactly what steps they are going to take in fighting your debt.
A lot of people get burned dealing with law firms trying to get their student loan debt dismissed.
Make sure they don’t ever:
1. Ask you to stop making payments
2. Ask you to make payments to them
Both of these are big red flags that they are NOT trying to help you.
Most people don’t ever need a student loan lawyer unless you’re struggling to get out of default, or you are being sued by your private lender.
If neither of these apply, all good lawyer will:
1. Validate that the debts are legitimate (which you likely know to be the case)
2. Validate that they haven’t violated any debt collection laws (which you could sue them for violating)
If you’re making payments and have no issues, then a lawyer isn’t a good option.
Tameka says
Hello I signed a contract with a company called Elite Processing and they are trying to get me to move over to a company called Golden Financial Services. I have found many complaints stating that this “company” is a scam. How can I terminate my agreement and prevent my account from being charged? I’m so lost and feel like there is no hope for me getting help with my private student loans with Wells Fargo.
Robert Farrington says
You need to read the agreement. Typically if you don’t pay or don’t move to this other company, they won’t charge you. You can also dispute the charge on your credit or debit card if they refuse.
As for your loans, work with Wells Fargo or refinance them to another lender.
S Man Stan says
Hi Robert,
I just set up my payments through a ‘document center’ Ameritech Financial. While, I do realize that over the course of the loan I will be paying them $800 for something I could do myself, if I theoretically felt better about having them help walk me through the questions and remind me every year to file on time in order to maintain my IBR, isn’t that a good service? I mean, I realize that not everyone is as weird as I am, but the value proposition for me is alright. Additionally, they do offer some nice benefits (all free, no strings attached, and they don’t require any binding contracts whatsoever) like roadside assistance and an extra free credit report each year (above and beyond the free one you’re entitled to). They also helped me cut through the BS that Great Lakes (my debt collector) kept telling me about my loans, which again can be done via Google and with time, but it’s nice to have someone advocate for you nonetheless.
Just another perspective I thought I’d share. Obviously, for 99% of people, it makes sense to follow all of your advice and not pay for a service like this. But I think as long as you understand what you are (and are not) getting, signing up isn’t like being ‘duped’.
Thanks for taking the time to help everyone. I’ll encourage my friends to visit this site.
Best,
S
Robert Farrington says
Thanks for sharing. I’m always mixed on this. If you want to pay someone, go for it. However, you can also do it yourself.
amalia says
Hi Robert
So is my great lakes.org a SCAM?
Robert Farrington says
My Great Lakes is a Federal Loan Servicer. You can find the list of student loan servicers here.
Some companies create names that look and sound very similar to Federal Loan Servicers, so just educate yourself before moving forward.
kyle says
have you heard anything about student debt advocates?
Robert Farrington says
No, but just like the article states, don’t pay a company to consolidate or change your repayment plan. It’s not worth it.
Crystal says
Is there a way to confirm it is legit by calling the lenders before a payment has been made to the possible supposed fraud loa forgiveness program?
I signed up for one today through the advertised Art Institute loan forgiveness program and like your article stated they asked for 199. for three months and then dropped it to 124.75 for 4 months making it sound like a deal. The paperwork looks legit but seriously I laughed while signing it and thinking to myself how great this all sounded but who has time to read this all and we find ourselves thankful that the representative is breaking it down for us.
Robert Farrington says
Hi Crystal,
First off, there is no such thing as “Art Institute Loan Forgiveness Program”, so any company advertising that is a scam.
Second, this company is likely charging you to fill out some type of repayment plan program – but based your comment, it doesn’t sound like they were clear on what they were offering.
I would definitely NOT use this company. Save yourself this $1,000 charge and cancel anything you’re doing with them.
If you have Federal loans, anything you need help with them is free. You can change your repayment plan to income-based (which will lower it to 10-15% of your income), you can see what student loan forgiveness options you qualify for, and more simply by calling your lender, going to StudentLoans.gov, or checking out our Student Loans page.
Finally, as a word of advice – you need to take the time to read this stuff. It’s your money and your life – no representative will ever care about it more than you. You have no idea what that “representatives” interests are – maybe commissions, maybe their job if they don’t close deals? Take the time, slow down, and read it. It’s your future.
Andrew says
I’m writing on behalf of my fiancee. Her Navient private student loans in the amount of approximately $66,000 were “charged off” by Navient. Now she has been contacted by a company called FAMS that offers to lower the interest rate to .001% after three months if she begins paying $250 a month. Is this a legitimate offer or is it a scam? What is the best way to proceed after the loans have been charged off by Navient?
Robert Farrington says
FAMS is a debt collector. She must not have paid her loans in a long time. I would speak to a student loan lawyer before contacting or working with this company to assess the validity of their claim to collect the debt.
Mikayla says
I see you are saying Ameritech basically charges a fee to lower your loans, which you can do by yourself. But, can you lower your loans owned by Sallie Mae/Navient? I am able to do an income based for my federal loans, but what about those by Sallie Mae/Navient? A friend originally had these lowered by Ameritech. I don’t want to pay for a service I can do myself, but I don’t know how to go about getting them that low myself? (They dropped hers from about 500 per month – government and sallie mae – to 200 for the first year then 100 for the second)
I know that I sound INCREDIBLY financially illiterate – but do I do this by consolidating these with federal? Or requesting income based for Navient?
Robert Farrington says
Your Federal loans are all handled by a loan servicer, which could be Navient (realize that Sallie Mae and Navient are two different companies – Sallie Mae does private loans and Navient does Federal loans). All Federal loans are owned by the US Government and the rules are simple.
If you have Federal loans, simply call Navient and work with them for free. Super simple. You can also go online to StudentLoans.gov and do it yourself without talking to anyone.
If you have private loans, these are like a car loan or mortgage. Your payment is set and there is no negotiating it. If you want to change it, you simply get a new loan. This is called student loan refinancing. We recommend Credible for this – they are a simple comparison tool that finds you the best rate.
Finally, you can’t compare your payments to your friends. Everyone’s payments under IBR (income based repayment) will be different and based on their income – it will be 10-15% of your monthly paycheck. You can easily do that yourself by calling Navient or going online to StudentLoans.gov. Don’t pay this company for this, if you can fill out a job application, you can easily fill out the form required.
Finally, student loan consolidation is an option for your Federal loans, but it won’t change anything. It just combines them to make it easy to manage.
Rose Charles says
Thank you Robert for your information, I was contacted by Premier Credit wanting to work with me. They stated that they are handling now my school loan from ECMC for $11,000.00. They told me they word directly with Studentloans.gov, they can help me with accessing studentloans.gov to reduce my loans and making low payments. They started by telling me to access the studentloans.gov website, then they will help me. Have you heard of this company? How can I talk to someone there in helping make payments without going through a third party. I have been approached by several companies asking form $150.00 a month to $500.00. It’s really aggravating, I just want to start making minimum payments but don’t want top deal with scammers. How can you help me?
Robert Farrington says
It’s easy to talk to somebody! Just call ECMC your lender and talk to them. They aren’t scary – they will help you.
If you prefer the online route, you can go online to StudentLoans.gov yourself and do anything you need to. You don’t need to pay a third-party to login and change your info for you.
As for your payments, just call your lender. They have their own website here where you can handle your loans yourself: ECMC.org.
Brandon Sadhoff says
Hey how’s it going? Have you ever heard of premier student loan center? I got the number from mother. I owe about 35,000 in fed loans. I called them they said they can get my loans reduced from $400/month to $30/month and anything not paid after 10 years is forgivenen. So basically I’d be paying about 4,000 of the 35,000 of loans and the rest would be forgiven. I’m a postal worker and they said I qualify for a special program. They said the first 4 months of payments would be 272 a month and then afterwards my payments would be 30 a month. I checked and they are accredited with the BBB since 2014 and have 6 reviews all positive. They also claim they purchase the loans from my current lender. Does this seem legit? Or does it sound like a scam?
In your opinion what are the best companies to deal with regarding loan forgivness. My goal is to qualify for a student loan forgiveness program since I’m a postal worker.
Should I look to work with a government company for this or should I try to work something out with my current lender. Once again I seek to qualify for student forgiveness and lower payments if possible
Robert Farrington says
They are a docu-prep company. Based on your comment, it sounds like they weren’t clear with you – they are simply changing your repayment plan to IBR and helping you with Public Service Loan Forgiveness. Both of these are free programs that you can easily sign up for yourself on StudentLoans.gov or with a phone call to your lender.
For this privilege of filling out your name and SSN on 2 forms, you’re paying them $968 – that’s the difference between the $272 and $30 per month they thing you qualify for. Outrageous. If you search our forum, you’ll find other stories very similar to you with all different prices being charged.
So, best course of action is to call your lender, tell them you want to see if you qualify for Income Based Repayment. If so, get on it. Then, sign up for Public Service Loan Forgiveness (PSLF) if you qualify.
Georgette says
I wanted to know,i did the same thing with this same company and paid them $199 for 3 months and they keep sending me emails to unlock my FSA ID….could I still call them and cancel and dispute the charges with my bank?
Georgette says
Also,my last payment was in July and I have not seen anything or really heard anything from premier until a few weeks ago when they asked about the locked ID….I’m super paranoid now,I want to cancel and I want my money back because I also was already on a IBR.This was a PSLF offer on my $34,000 loan.
Robert Farrington says
And remember, PSLF is an easy and free government program. You can simply do it yourself. If you’re concerned about it, watch our PSLF video tutorial: PSLF Video Tutorial
Robert Farrington says
It sounds like you can dispute it if they can’t even process what you paid them for. If they don’t have your FSA ID, have they even done what they said?
Kyle says
Hi Robert,
Have you read the Consumer Financial Protection Bureau’s Student Loan Servicing Report?
Robert Farrington says
Not cover to cover, but a bunch of it. Why?
P.S. here’s a link for anyone interested: CFPB Student Loan Servicing Report.
Kyle says
Good so you also know that more than half of the borrowers enrolled in an IDR program through their servicers fail to recertify on time?
Robert Farrington says
Sadly yes, but that’s due to lack of borrower education combined with a failure of the Dept. of Ed’s servicers to accurately and adequately communicate with borrowers.
Even with that statistic, borrowers should NEVER, EVER pay a docu-prep company. The average docu-prep company charges roughly $600 to consolidate (which NEVER requires re-certification) and switch to an income-based plan. That’s 1.6% of the average loan value right now (based on a $37k average). Way to much… Borrowers should pay off their loans instead.
Follow it up with the fact that too many docu-prep companies either:
1. Don’t do as they promise
2. Fail to submit documents on time themselves
It really just ends up being a “scam” for borrowers anyway. Most docu-prep companies fail within 2-3 years. I’ve year to see a single company exist longer than 5 years. So, how about we educate borrowers instead, and help them, versus charge them for paperwork processing (and charge them outrageous amounts).
Paul says
Reading through these questions and comments brings up some questions. Number one, why would you say to go through the loan servicer and then say that people are not re certifying the program every year due to “lack of borrower education combined with a failure of the Dept. of Ed’s servicers to accurately and adequately communicate with borrowers.” how does that make any sense to trust these companies?
Number 2. Do you have or did you ever have federal student loans? If so are you still paying these loans off or did you have those forgiven?
My last question for you is, Do you work on your car, would you represent yourself in court, shoot do you cut your own hair? If not, then you are paying for services that are FREE.
It’s such a great word, right? It means to be lacking in cost. Without a price. Except free is a lie. Free does not exist, Nothing in life is free. Everything costs something, including doing nothing. If someone tries to give you something for “free,” the first question should always be, “How much does it cost?” or “What will this cost me.?” If they persist in telling you it’s still free, then you’re probably at Costco eating cheese off a toothpick.
Robert Farrington says
Hi Paul, thanks for your great questions.
#1 – While the Dept of Education doesn’t mandate this, doesn’t mean that working with your lender isn’t the best course of action. Why trust your federal loan servicer? Because they are legally obligated to service your loan, and are contracted by the U.S. Government. Working with a random 3rd party docu-prep company is much less trustworthy that a Federal loan servicer.
One of the frustrating aspects of this docu-prep market is they specifically call themselves “document preparation companies” to avoid being labeled as credit repair or credit counselors open themselves up to more licensing requirements that could potentially protect customers. Furthermore, credit counselors that make debt repayment plans with lenders are not only required to be licensed, but also bonded and hold special insurance in many states. Docu-prep companies are exempt from all of this, and the lack of oversight harms borrowers.
#2. Yes, I have over $42,000 in Federal student loans, and I paid them off in 3 years. Read my history and story.
#3. Yes, yes, and yes. I’ve changed my oil, I would go to small claims court, and my wife cuts my hair for free. Either way, if you can’t afford something, you shouldn’t pay for it. You’re also comparing apples to oranges. These are all services that are low priced (less than $100, heck, oil change and haircuts run $20-30). I’m not against paying low prices for a service. I pay $50 for tax prep software every year versus printing and filling out the forms myself. But I can afford it, and I’m not being scammed.
Filling out forms for IBR/PAYE, PSLF, or even consolidation are EASY. Like super easy. Here are the links for people to look at the forms:
IBR/PAYE Application
PSLF Application
Federal Loan Consolidation
Look for yourself. Put your name, address, phone, SSN, and check 2/3 boxes. If you do the online version, it’s even easier as it pulls your loan information. You’re telling me that people should pay, on average, $600 for this?
And these programs and forms aren’t free. You’re trading your time for them. You’re trading your tax dollars for these programs. So, yes, you should ask yourself how much it will cost and where that money goes? I know that the $600 I pay XYZ docuprep goes into some random guy’s pocket to fill out my name on a piece of paper.
Matt says
I made the mistake of giving one company my phone number and now I get called by different companies almost twice a day, how do I get them to stop calling me?
Robert Farrington says
Answer and tell them to remove them from their call list and you’re documenting this conversation. They’ll stop pretty quickly.
Stephanye says
Good morning. Thank you for the information you’ve provided for the benefit of so many who simply want to come from under student loan debt. My husband and I have made one payment each to a company called Student Loan Assistance Center (SLAC, Inc.) in Norco, CA. They did inform us of the processing fee up front ($175.00 for me and $326.00 for my husband), which is to be paid for four months in addition to a $39 membership fee, which is to be paid monthly over the next ten years. After the tenth year, we are told the remaining loan amounts would be forgiven under the Public Service Loan Forgiveness policy. We are educators. Have you heard of this company? We live in Mississippi…should they be soliciting us? We’ve also spoken to the City Manager of Norco who told us the business is not registered and therefore in violation of city policy. We have no problem cancelling our agreement with SLAC, Inc. We just wanted to know if any others in this forum has experiences with them.
Stephanye says
Also, many of the companies mentioned in this forum are listed in the membership directory belonging to the Association for Student Loan Relief (AFSLR). They seem to be a regulatory body for student loan document processing companies. Their website appears generic at best. Are you familiar with them? I wanted to include there name here for anyone who is doing their due diligence to investigate these companies before getting involved with them.
Robert Farrington says
The AFSLR is a trade industry group. All they do is support their members, similar to the National Retail Federation supporting retailers.
The regulatory bodies that oversee document processing companies, sadly, are limited. You can file complains with the CFPB, your state attorney general, or the Department of Education.
Robert Farrington says
I highly recommend you cancel your agreement with them because you can easily perform the services they are offering for free.
They are doing two things for you: changing your repayment plan to IBR or PAYE, and signing you up for Public Service Loan Forgiveness. Both of these are free government programs that are incredibly easy to apply for – name, address, and SSN is all you need.
Basically, they are charing you $4,680 over the next 10 years, for each of you, to fill out a single form each year. I don’t think that’s a good deal. If you want to learn about PSLF, sign up here and save yourselves years of money going out the door: PSLF Training.
Stephanye says
Thank you so much. Will do. Again, I appreciate the info.
Janice Campbell says
My daughter’s student loans were transformed to another lender. She was contacted to make payments. They wanted more money than she could pay. Money is being taken out of her check each month.
It leaves her with hardly enough money to live on, with a 3 month old baby.
If there anything she can do? These are federal loans.
Robert Farrington says
She needs to contact her lender and discuss repayment plan options. Income based repayment plans can help in her situation, as they will lower her payments to as low as $0 if she doesn’t make much money. If she’s on that plan and still struggling, then it’s time to look at other budget items in her life.
Thomas S says
DO NOT USE FIRST STUDENT AID! firststuedentaid.com
They accomplished nothing after taking 4 monthly payments totaling $1000. I am in the process of disputing the charges with my bank.
They are a complete joke! Just contact your lender and COMMUNICATE! they will offer you the same programs as the con artists will try to tell you that they were doing more and offering different plans when it is all a lie!
Angel says
So I have gave a call to this number today, 877-618-6057 and the website is artinstitutesloanforgiveness com
And I was speaking to a lady about checking to see if I can get a loan forgiveness because I was in a situation where the school had lied to me about some promises they have made, and now they are about to close the college, so I can’t even gain support from them. She told me about about a program and how I can choose to pay $199 for 6 months or just pay a one time payment of $799 to be in this program. She also said that I was eligible to get my money back of everything I have already paid, and said that my loan payment will come to a halt, and that I’ll never have to make a payment anymore. I got off the phone because I didn’t know much about them, and needed to see if it was true, is this a scam? Who should I really be contacting?
Robert Farrington says
I’ve never heard of this company but they sound like a document preparation firm. Since you gave no specifics (or maybe they didn’t give you any), it’s hard to tell what they were even going to do for you.
For your situation, there are two things to think about: short and long term. In the short term, you’re going to have to figure out these loans. Call your lender, work with them to setup an income-based repayment plan. That’s free, and it will only take a short amount of time to setup.
For the long term, you can pursue avenues to get your loans forgiven, but that path is harder and longer. If you do believe that you were mislead, you can apply for Borrower Defense to Repayment, which is forgiveness is cases of fraud. You have to have proof though – emails, documents, etc. Second, you can contact the CFPB or your state attorney general and see if either are looking into this college already. Finally, you could contact a lawyer as well to review your options.
The bottom line is that you should be paying for help – you should talk to your own lender.
Dhara says
I went through the process of consolidating my federal student loans with Docuprep Center, a California based company. Everything sounded good my new interest was just going to be a fixed rate of 4.57% (I had some loans which were 8% and others as low as 2.65%) I was told to lock in the 4.57% I would have to consolidate the lower interest rate loans, and if I excluded them the interest rate would jump to 5.37%. I did the math and at 4.57% it made send for me to consolidate ever the lower interest rate loans. I proceeded only because they mentioned they worked with the dept of education and the only fee I would have to pay was a process fee of $799 and they would put me in forbearance for three months. I paid the fee. Two months later my loans have consolidated however the fixed interest rate is 7.5%. I called them back and they deny that they would ever provide a guaranteed loan amount. The Dept of Education mentioned they cant do anything as my consolidation has been completed and they have no affiliation with Docuprep. Is there any legal course of action I can take to recover the additional $s I am not liable to pay due to the higher interest rate?
Robert Farrington says
Honestly, that’s a bummer. It sounds like they did what you paid them to do – consolidate your loans, but unless you have anything in writing about your interest rate, it’s going to be hard to get any recourse for your issue.
I would encourage you to share your story with the CFPB and the California State Attorney General.
Chrissy M. says
Hello Robert. After reading all the comments, here is my question. I also got scammed by paying for the service I know now I can get for free. But my question is, now that I paid, what happens? I was told that my payments will do down to $0. How can I verify that what they are telling me is true? The company is The Student Loan Relief Department. Their website is slrdus and phone number is 310-432-6959. I would be less annoyed about getting scammed out of money if I at least knew that something was being done with my loans. If I don’t pay my loans, then they take my income tax. I am freaking out. Please help!!
Robert Farrington says
Well remember, it’s not a scam if they do the work you paid them for. So, what did you pay them for? Consolidation? Changing your repayment plan?
Basically, you should call your lender and ask what they did and see if they did it correctly. You could also look on StudentLoans.gov or check your credit report.
No matter what the company does, you should still be paying your loans under most circumstances. Call your lender and see what’s going on.
Brittany Mathes says
Has anyone heard of the company called Premier Solutions Servicing?
Is it a scam ?! I already gave them all my info and signed an aggrement ? Please help me get some answers!
Robert Farrington says
They appear to be a document processing company. Basically, you’re paying them to fill out forms that you could do yourself for free on StudentLoans.gov or via the mail by printing them off.
We don’t recommend you use these types of firms because it’s easy to apply for all the programs yourself without paying anyone.
Leslie says
Hi,
I gave my information to “United SL Processing” a student loan consolidation company. I signed on some documents that included my social security, personal contact information, and my debt card. I didn’t get to make a payment, thankfully! And since I only provided my card information, I contacted my bank and was issued a new debit card. Should I be concerned that they have other information such as my social security number and my home address? Please advise.
Robert Farrington says
I wouldn’t worry to much, but it never hurts to be vigilant and monitor your credit report for anything suspicious.
Samantha says
I am with certified doc preps and they charge me 30$ a month. Can I cancel? My loan is with fed loans. Is that a problem?
Robert Farrington says
You need to read the contract and see what it states about cancelling. Typically yes. And since your loan is at FedLoan (which is a government loan servicer), you can do everything for free on StudentLoans.gov of by calling Fedloan.
Dorothy M. Cooper says
I just signed up less than an hour ago with globaldocprep for four payments totalling $799.00 over the next four months. I am usually very careful when doing business over the phone, but I did not think to check this company until after the fact. Now, I am worried. I can find very little information on them although they do have a facebook site. I filed for student loan forgiveness with the DOE, but I never heard from them. According to what I am reading here, you are saying that I could have gotten this information for free and without the hassle. Is it too late to change this? I am really worried. If this company is legit, do I really need to worry about them taking advantage of me, or have they already done that?
Robert Farrington says
I’ve never heard of them, but yes, you can do almost everything with your Federal student loans for free by going online to StudentLoans.gov or calling your loan servicer.
You would need to read their cancellation policy, but typically if you don’t pay, it’s cancelled.
Here’s a “>video message from the Secretary of Education explaining how these services are free.
Yai says
Has anyone heard of the company called Gradsaid?
Is it a scam ?
Robert Farrington says
Never heard of them but someone posted about them in our forum.
Remember, with almost anything to do with your Federal loans, you can do it for free on StudentLoans.gov or by calling your loan servicer.
Danii says
Hello,
Has anyone heard of AFSLR (Association for Student Loan Relief) I was on the phone with them for an hour and they had all of my Student Loan info and interest rates and what have you. They are asking for 3 payments of $299 and then my payments will be $46 a month for 240 months. Does this sound legit to you?
Robert Farrington says
I’d be concerned, because if you go to the legit ALFSR.org website, it specifically says “If you are a consumer, please be aware of any marketers that are calling stating they work for AFSLR. AFSLR does NOT market to consumers. Be wary of these companies.”
Second, it sounds like they are just signing you up for Income Based Repayment (that’s where the 240 months comes in). You can sign up yourself for free at StudentLoans.gov or by calling your loan servicer.
James says
I just read this article while signing up with Student Loan Division. So I cancelled the transaction. However, I signed one of the contracts and I’m wondering if I need to send in a written statement saying that I cancel all transactions with the company?
Has anyone else ever dealt with Student Loan Division?
Thanks!
Robert Farrington says
You need to read the contract and see what the stipulations are to cancel.
JLH says
Hello,
I believe I was mislead by three companies, equitable acceptance, processing concepts, and asf acceptance. They sent an ibr request on my behalf and it was denied. I believe this was a scam of some sort but I’ve changed my passwords and sent them emails repeatedly saying I no want the service they provide and asked that my contract be voided and that they never attempt to access my information again. They also reported the account I had with them to the credit bureau and it looks like a credit card that was maxed out bringing my score down tremendously. PLEASE HELP! Do you have any advice on how I could get out of them horrible contract?
Robert Farrington says
You need to read your contracts with these companies and see what you can do.
In general, you can sign up for IBR and similar programs for yourself at StudentLoans.gov.
Ayaah says
Hello, I signed up with studentloan-assist.org
I gave him all my information credit cards, social, address, etc. But i did not sign the terms of agreement document that was sent to my email. I am worried that they will try to steal my identity or take money out of my CC. Do you think that is possible? I am extremely worried.
Robert Farrington says
In general, if you didn’t sign anything you should be fine. I would recommend monitoring your credit – it never hurts.
adrian says
Hello,
Without running it by me, my fiancé used student advocates llc to consolidate her subsidized and unsubsidized student loans back on Dec 5 when she signed the contract. After reviewing everything, it seems to me that they did what they said they would do but are charging her 49/month/3 years but the contract says 1300 the first year. The new loan company is fed loan servicing which happen to approve her loan on Jan 12 and has since paid off her loans from great lakes. While they technically did what they said they would do i guess, I am not happy that she is paying monthly for something that could have been done for free. My question is that after learning about all this, do you know of any grace period that would allow us to cancel with the new servicing company or would you happen to have any advice to maybe get out of this? Contract states that once services are completed, if client cancels then $1322 is due. If we are stuck then I guess this is a expensive learning experience for her and I hope more people become aware of these god awful companies.
Robert Farrington says
I’m not a lawyer, but typically once services are rendered you need to pay.
Phillip Williams says
So I was looking at Premier Student Loan Center; a friend of mine said he just signed up and they reduced his student loans from $72K to $24K; paying $244 for (4) months and $30 a month for 3 years. I saw early that you said we can do this ourself on Studentloans.gov but I don’t see how to do this on the site. Please advise.
Thanks,
Robert Farrington says
Once you login, you select “Apply For Income-Driven Repayment” from either the left sidebar or the footer of the page.
Michelle says
I’m looking into Premier as well, I have a few friends who have signed up with them and they saw a 50-70 point boost in the redit score because their loans are going from 75,000 to $12,000 (just an example of one of them). Is this possible? Has anyone heard of this?
Robert Farrington says
You loan balance will not change regardless of what any company does for you. However, you might see a boost because you start making on-time payments on your debt again. Once again, though, not because of any company.
Amanda says
Do you know anything about Student Loan Advocates? I have to pay a processing fee for 3 years.. 50 a month. While my loans are down to nothing a month. They were able to do that for me, whereas no one else could. Is this legit?
Robert Farrington says
I can’t answer if it was legit – only you can decide that. It sounds like you paid for a service and they did it for you. If so and you’re happy with it, that’s great.
If you’re concerned and want to check if everything was done correctly, call your loan servicing company and ask.
Amanda says
I will contact my loan service department! Thanks for getting back to me!
Sheema says
I have been harrassed by “ECMC” on my cell phone and my work phone about my student loans. I recently consolidated all of my student loans through Navient and ECMC claims I’m in default which I know I am not. They keep calling my work number which they should not be doing and it is harrassment at my place of business. What should I do? I’ve heard the people through ECMC are not nice and will not listen when you have proof that your loans are either paid or consolidated. There have even been people who has never had a student loan and are being harrassed by ECMC as well. Please, any advise would be appreciated.
Robert Farrington says
You can file a complaint with the CFPB here: https://www.consumerfinance.gov/complaint/
Kelsey says
Has anyone heard about Student Loan Assistance Department? Is this a legitimate company? May also be known as Accel Service Center? They want to charge $799 for consolidation?
Robert Farrington says
It sounds like a document prep company. You can pay them for a service, or you can do it yourself for free online at StudentLoans.gov.
Randi says
I have been contacted by them too. $799 was my offer as well. I am so grateful for your comment Robert!! I am going to try that route first. Thank you!!!
Matthew says
So I recently started working for national student loan solutions. I am worried that I am really not helping people however the upper management has repeatedly told me we are not a scam. I would hate to be contributing to keeping people in debt since I genuinely love to help people. I have had some problems in my past with the law and so I am grateful they hired me however I feel they may operate against my personal morals. Any insight? I’d really like to hear that I’m working for one of the companies that actually cares about its clients but I’m skeptical. Any insight is greatly appreciated.
Robert Farrington says
If your company is doing any of the “red flags” above, I’d be concerned. Only you can make that assessment. Feel free to share anything you’re comfortable with so others can benefit from your experience. If you want to email me directly, feel free.
JA says
Hi Robert,
Today I talked to Student Loan Assistance Program. I e-signed papers for them to take care of my student loan, for a fee. I have not yet paid the fees they are asking, but I did give them some banking info and my ssn. After reading this, planning on canceling, but I am concerned about giving them my info. Am I at risk for identity theft?
Thanks.
Robert Farrington says
I think you should be fine, but it never hurts to monitor your credit. You can also check your credit report for free at AnnualCreditReport.com – maybe do it in a few weeks to be safe?
Lily says
Hi Robert,
Thank you so much for this article and for answering all our questions. So I just signed up with Ameritech Financial and I was explained everything but my only concern is that what they say will be true. What I mean is that after 25 years whatever amount is left over, all will be forgiving. With MyFedloan I was told that after 20 years, the balance would be used as an income that year and all I have to pay was taxes on that amount and that was it. Ameritech claims that no, after 25 years of paying on time everything will be forgiving. I just wanted to be sure. I felt confortable with the lady that helped me and made sure I understood everything. Just wanted your opinion. Thank you!!!
Robert Farrington says
What plan are they changing your repayment to? When did your loans originate? Did you have multiple loans at different lenders? It is either 20 or 25 years, but it’s all based on your repayment plan and date of loan origination.
Dale Cox says
A company by the name of 1st Choice Financial out of Newport Beach, CA contacted me about consolidating my college loans into one loan at a lower monthly payment. All I need to do is pay a one time charge of $83.00 to process the paperwork which I can pay by phone on card or use the invoice they e-mailed to me which I can via Pay Pal. They had my personal information for who my college loans are currently with and how much I still own. They even helped me obtain a new FSA# to identify me in the US Dept of Education. I had to give them my FSA# which I assume helped them pull my personal information. They e-mailed me the 16 page form they filled out to reassure the loan processing is legitimate. They gave me options of loans and even an option to have a income based loan I would need to verify my income every year. I already have an income based repayment plan. They gave me my new lower monthly payment and how it is a 180 month repayment which will slowly increase based on if I pay the minimum payment or if I pay more each payment. They even provided the rough estimate of my highest future payment. They had my last 4 digits of my social security# so I just needed to verify my first 5 digits of my soc# which I gave them. I have not made a payment or signed anything. They said I am done making payments to my current college loan lender. Do you know if this is a legitimate company?
1st Choice Financial
1985 Sherington PL Suite E310 1stchoicefin.org
Newport Beach, Ca 92663
Thank you for your time.
Robert Farrington says
Hi Dale, only you can decide what legitimate means to you. It’s an opinion that we can’t help assess. Read the red flags above and know exactly what you’re getting into. Also remember that you can do this yourself at StudentLoans.gov for free.
Brian Schweitzer says
My wife contacted a company by the name of 1file.org for dropping the payment of a parent plus load for our daughter when she attended the Art Institute in Phoenix Az. Overall payment of $899 split into 3 payments, with a $39 fee per month added to the lowered loan payment. Have you heard of anything about the company 1file.org?
Robert Farrington says
We haven’t heard anything but other users have posted about them in our forums.
In general, you don’t need to pay a fee to do anything with your Federal student loans (you can do it for free at StudentLoans.gov). However, you can choose to pay a service if you want to. If you do use a service, make sure you look out for the red flags listed in the article above.
Matt Gilchrist says
Your articles are interesting, and I will agree that being involved with a program to lower student loan debt is a bit unnerving. I have been working through a company called National Student Loan Solutions (based in CA) for almost two years. Do you know anything about them?
I haven’t necessarily had any bad experiences with them per se, although I got a notice this morning that said that someone had requested a change in my FSA ID password, and it got me thinking. I am paying $39/mo for these people to essentially monitor my payments, and once a year remind me that I am supposed to turn in a form to demonstrate my income (income based payments). Even this last year, apparently that was not done in a timely manner, because my payments got all screwed up somehow.
What is your opinion on NSLS, if you have one? I am also supposedly enrolled in a PSLF program (I am a teacher), and I don’t want to reach 10 years of payments only to find that I am not being forgiven after all.
Thoughts?
Robert Farrington says
Never heard of them, and like I’ve mentioned dozens of times, you can do everything yourself. PSLF is pretty easy to follow up on, and so is certifying your payments. Only you can form an opinion about the company you’re paying for help.
I always advise, even if you pay for help, to validate the work is done. You can login to StudentLoans.gov or call your lender yourself any time.
Stacie says
My brother told me about Premier Student Loan Center.
I contacted them and was told that after 10 years (120 payments) I only pay $3300 and get the the remaining $22,000 forgiven. Both of my loans are either in deferment or forbearance. If I pay the asking $292.00 a month after the deferment/forbearance ends, my current $25,000 student loans debt will be $46,010 by the time I finish my payments.
With this company, I would start off for three months paying $300 and then pay only $20 for ten years. So, I gave them everything: My ssn#, work information and debit card number.
Now, I’m worried. Is this company a scam? Within a few hours, I’ve already cancelled my debit card (they were planning to take the money off of my card in a couple of days) and I’ve put a fraud alert on my credit.
Did I jump the gun? Should I call Navient and Nelnet to make sure this company doesn’t have power of attorney? Please advise.
Robert Farrington says
Read the article and look for the red flags. We weren’t there for the conversation you had with them, so only you can assess that.
We can tell you, however, that you can do everything with your loans for free on StudentLoans.gov. If you’re going to pay for help with your loans, you should ensure you are very clear on what they are doing on your behalf, what programs you’re in, what’s required from you, etc.
mike says
I graduated from University of Phoenix and went on to Devry for some classes. I keep seeing these loan forgiveness places offering to relieve my UofP loans.
Is there a way that this can be truly done?
Robert Farrington says
Potentially, if you were misled or defrauded by the school when getting your loans. It’s called borrower defense to repayment, and here’s a full breakdown of it: Borrower Defense To Repayment.
Matt M. says
Mr. Farrington,
I recently visited a site that talked about loan forgiveness for people who went to Westwood College. This website talked about how their client took the college to court and was forgiven on her loan. Seemed legit so I gave my information for a follow up call. Soon I was contacted by phone and gave them information about my loan and SS#. I was about to continue the process when I had an uneasy feeling. I asked to be contacted on the following Monday to give me time to research them. Name is “Academic Aid Center”. The lady who I talked to said that the company was recognized by the BBB and an affiliate of the Dept of Education. She said that because I was misinformed on the accreditation of Westwood and other business malpractice that I could get a loan forgiveness. She gave a long winded speech about how my case would be sent to other departments to make sure I was qualified and that if I was approved then they would take my case. All I would have to pay is a $799 fee and that it would take up to 9 months for the case to go through. After reading your website and reviewing the E-Book they sent me in the emails. I read the bottom portion of the E-Book to find an almost exact replica disclosure message that you posted. I was so overwhelmed with joy to hear that I didn’t have to pay back a student loan for a company that mislead me into program that has no value anymore. I read more into what you were saying about going to my lender website and soon found the link for loan forgiveness. Man I feel really stupid for almost buying into something I could’ve done for free. The lady on the phone made it sound like I had a limited time to do this with new administration in office and that this “program” wasn’t going to last long. About how there has been an influx of students from my school wanting to get this benefit. She mentioned that the company had to show all their information otherwise they wouldn’t be qualified to handle cases with the Dept of Education. This last few statements were after I told her I wanted to wait until Monday to get more information about them. I tried to google them but didn’t find much about them. Also, the BBB doesn’t recognize them. She also mentioned the Association For Student Loan Relief giving them accreditation. She also said that if I made any payments on the loan then I would also get refunded the money.
Anyways I just wanted to thank you for sharing your knowledge so that it opened my eyes to what she/they were trying to do. Paying for something I can do on the lenders website. I gave her information about my loans and I also gave her FSA information like codes to change passwords and login information. I’m assuming I need to call them and tell them what happened right? She has my SS# so besides monitoring my credit report what else can I do?
Robert Farrington says
Monitoring your credit is about it. You still might qualify for Borrower Defense To Repayment (besides just changing your repayment plan). Read this article, you might find it helpful: Borrower Defense To Repayment.
Melanie says
What if the company that I originally borrowed from will not work with me anymore because it has been so long since I have made a payment?
Robert Farrington says
You need to go through a process called student loan rehabilitation to get your loans out of default. Learn about it here: Student Loan Rehabilitation.
Keun says
I’ve been scammed!! Please help!! I was under the assumption that I was refinancing my student loans with National Student Loan company. They told me to stop paying the previous company and complete their application and they will take of the rest. I would pay 49.00 a month and that would go toward my student loan when payments are due. Come to find out they charged me 1300.00 for them to sign me up with a student loan forgiveness program with the actual student loan company and that money will never be applied to my student loans. My previous company reported me last 60 days and my credit score dropped 131 pts. Also the third party company that is charging me 49.00 a month is on my credit as a credit card that is maxed out and is causing my credit score to be even lower. I was deceived and I feel stupid!!They won’t cancel and unfortunately I did everything over the phone and computer . I didn’t read the fine print because it was such a fast process. What’s can I do of anything?
Robert Farrington says
You need to get back on track with your lender – not a third party company. If the company misled you, you can also file a complaint with the CFPB and your State’s attorney general.
Anna H. says
Another user on here (Amylie?) mentioned that they started the process with Premier Student Loan Center and that they told her/him they could not cancel her/his membership. They absolutely can. I’m thinking maybe what you won’t get back is the enrollment fee (unfortunately) if they have already started your process, which is an expensive lesson, but not as expensive as paying their monthly fee for 20 years or so, to the tune of $7000+.
I too fell into their trap and found that it’s exactly what this article states, the ONLY benefit is that they greatly lowered my monthly payment, but all the rest was a lie. They did not save me any money (actually upped my bill with their own fees). I didn’t need my monthly payment lowered to $50 a month, I sought out their services for the other promises they made, lower interest rate, cutting your loan down via less interest. This is all a lie.
Also, be very weary of gong through these programs FOR a lowered payment. They specifically use the word “loop-hole” and what it really is, is just fabricated information on your behalf. For example, claiming dependents that don’t exist, possibly even fabricating income numbers. You would have to contact the department of Education on Student Loans.gov to find out what was actually done.
So yes, I am now in the process of cancelling with them (minus the $900 enrollment fee). AND I will very much be contacting my servicer to revoke the Power of Attorney, as suggested on here. Please READ your agreement, all pages, all fine print. You CAN cancel, and you can rescind your Power of Attorney with Premier Student Loan.
Now, unless I’m just being had once again, no one threatened to send me to collections. I’m thinking they just want that $900 enrollment fee from you, and that’s what they’re threatening collections for. IF they have already started the paperwork and you have already signed documents, I have a feeling you’re not getting out of that fee. They seemed to have no problem with cancelling my membership (meaning no $30/mo. payment to them for re-certifying me yearly) because they already have my $900.
Don’t be mistaken though, they definitely tried to make me think that it was going to be super tricky to re-certify on my own. NO. I’ve been re-certifying on my own, through my old lender, for 12 years. It’s tax info and payment stubs, that’s it. That’s what you provide to re-certify.
Anna H. says
So yes, the fine print states that if you are unhappy prior to receiving the documents, then you have to provide in writing, your wish to cancel from the program, you must also request a refund in writing. Once the document preparation is completed and the third party sends you said documents, you are not entitled to a refund unless you are within your State’s statutory right. For me, I have no right to a refund under any statutory right, and it is dependent on the third party’s cancellation and refund policy.
elle jai says
I just canceled with them. I sent the agent I was working with an email, the lady who verified my information an email, I sent in two faxes posted it to their website 3 times and called Great Lakes to let them know NO ONE SHOULD BE SPEAKING ON MY BEHALF AS I HAVE BEEN SCAMMED. I know better to read everything in fine print before I sign but unfortunately trying to do the right thing got me scammed. Premier Student Loan Center has only been up and running for two years but because they are registered with the BBB I thought there was no possible way they couldn’t be legit. No where on my form does it state that I would be making payments to the government as they instructed I would be doing on the phone. It states the agreement expires after 120 days but we are still obligated to make payments to them. Going to contact the department of education to report them and let them know that I have been scammed as well as to inform them that I will be trying to do a consolidation later on today. PLEASE DO NOT USE PREMIER STUDENT LOAN CENTER!!! do more research. I’m just praying that I won’t have to make any payments because I have canceled before I received any paperwork but you can’t trust these people. I will also be contacting them later on today in the next thirty minutes to ensure they have received my email and that I want to speak to a supervisor so that I can send the email to him as well.
Christine says
I just want to know if premier student loans is a scam ?
Robert Farrington says
We can’t make your opinion for you – read the red flags above and decide. In general, you don’t have to pay for anything with your Federal student loans, but you can if you want to.
Clare says
My sister just started to consolidate her debt with Gateway Certified Loan Pro and has already paid over $400. Is it a scam?
Robert Farrington says
We can’t help you make an opinion about the company. In general, you can consolidate your loans for free at Studentloans.gov, or pay someone to help. If you pay for help, make sure you know what you’re getting and looking out for the red flags discussed in the article above.
Candi says
what do you think about globaldoc.prep? they say they underwrite for Department of Education. and debt forgiveness after 10 years of payments.Is this a scam
Robert Farrington says
Only Federal Loan Services work directly with the Department of Education and they are not a Fedaerl loan servicer.
There are various forgiveness programs, including Public Service Loan Forgiveness, which is a 120 payment (10 year) program towards forgiveness.
Read the article above and check for red flags whenever you work with a third party company that is not your lender.
Jaime says
Have you ever heard of American Docuprep? If so, are they a valid forgiveness company?
Robert Farrington says
I don’t know what you mean by valid? Remember, read the article above – anything you can do with your Federal loans can be done for free at StudentLoans.gov. If you want to pay for help, that’s cool, but look out for red flags mentioned in the article.
Allen Morgan says
I recently got something from them to about erasing my whole loan is this real?
Nichole O. says
I also recently got into American DocuPrep. They asked for 3 payments close to $300 for the first 3 months and that they’ll handle my loans, this is my second month. I have to call them every year to renew and that after 20 years my debt would be forgiven. However, interest is still there and I can still pay my loan myself.
After reading your document, I’m having second thoughts on whether or not I should still continue. I tried checking thought the BBB but came up with nothing, of course not all companies are listed there…
Anyone have dealt with them before?
Samuel C says
I had a phone call from 877 871 7770 claiming to be the student loan department. They initially said my email address is not current which was shocking and asked to know if I have another. They opted to help me use the email and go through the identification process on NSLDS. I was given an ID and a password and when it needed further information, I requested to get more time to carryout my inquiry.
I understand the Department of Education should have written me an email. I am worried and I feel this is a scam especially given that the lady insists to know when to contact me again. I will appreciate your advice.
Robert Farrington says
Sounds like you didn’t do anything with them? If you don’t want to work with a third party, don’t.
Samuel C says
Thanks Bob. I told them to give me some time to check and they promised calling back. I surely will not want to get entangled in their web. Thanks for your insightful caution.
Rhonda says
Hi I got a call from someone from mystudentadvisors.com today to set me up for the William Ford debt forgiveness program for my Federal loans. Any information on this company. The information in their contract shows them listed as MJCCSL Corp.
Robert Farrington says
We don’t provide opinions on companies, but you can use the red flags in the article to judge for yourself.
You should also know that there is no such thing as a “William Ford Debt Forgiveness Program”. William D. Ford is simply the name of the law that created direct loans and multiple other programs. You should know exactly what you’re getting into before you move forward.
Barbara Geiger says
I understand the Department of Education should have written me an email. I am worried and I feel this is a scam especially given that the lady insists to know when to contact me again. I will appreciate your advice.
Robert Farrington says
Don’t quite know what you mean and what advice you’re looking for. If you’re concerned about a company, don’t work with them. Also, follow the red flags above.
chris chang says
A company called Student Trust Group, they are a loan forgivness and they are registered by the AFSLR t hey asked for 199.66 for 3 months and after that they reqiure to wait for 240 months then my loan would be forgiven; is it a scam? please help
Robert Farrington says
We can’t help you form an opinion, but you should read the red flags above and get informed about what you’re paying for.
Based on what you said about 240 months, it sounds like the company is signing you up of Income-Based Repayment.
Second, AFSLR is simply an industry trade group, and registration with them is no different than joining AAA or AARP.
Finally, remember, you can do everything with your loans for free at StudentLoans.gov. If you want to pay for help, you can, but you don’t have to.
Bob says
Is nlsds.ed.gov a legitimate site? And why are they asking for a fee?
Robert Farrington says
NSLDS is the National Student Loan Data System. It’s completely legitimate and run by the Department of Education. That website is free and will never ask for a fee. My guess is a third-party company referred you to look up your information there and this company is charging you a fee?
LESLIE says
Hi. I am trying to find information on an organization also affiliated with the AFSLR (which I understand means little). The organization’s website is academicdischarge.com. The reps email address domain was is “academicaidcenter.com.” They contacted me because the school I received an online MBA from is listed among many that defrauded students. I supposedly qualify for total forgiveness because of their fraudulent practices. I need to pay $899 dollars and will be assigned a caseworker. I can find any information on this ANYWHERE!
Robert Farrington says
Once again, follow the red flags in the article before you work with a third-party company.
As for dealing with forgiveness for fraud, you want to look into a process called Borrower Defense To Repayment.
Ms. Mary says
Hi all we now have another new name company call “Student Loan Solution Center”( it was the Student loan Center) it’s in Rancho Cucamonga, CA Mr. Khee Park was the person I spoke to 949-427-7038.
I’m so glad I did some research on my owe, thank you for the article!
Janet Bertolone says
Robert;
My husband and I are on a fixed income (social security and a small retirement income) making about $35,000.00 a year for both of us.
I was contacted by United Relief Center about the “loan forgiveness program”
I currently have Plus student loans for my two children in my name for $90,000 with Ed Financial Services for $600 a month, which puts a huge financial strain on us to say the least. I have been getting calls about the debt forgiveness and I finally today answered the call and was told I could get the monthly amount reduced based on our income, then balance forgiven after 36 months of making reduced payments, but I was told by Ed Fin that with plus loans they can’t do that. I was also told the loans cannot be transferred into the kids names unless they go back to school and get a new school loan.
1. Is United Relief legitimate?
2. Can Plus loan payments be based on income?
Janet
Robert Farrington says
1. We can’t help you formulate an opinion on the company but urge you to read the article and look for red flags.
2. No, sadly you don’t have many options with Parent Plus loans. Here are the best options for your Parent PLUS Loans.
Andrea Forehand says
I told of a teacher who used one of these companies to complete her paperwork. The company used only her income and had her list all of her financial obligations. I am assuming this was written up as some sort of “based on your income” repayment plan. Her husband’s income was not calculated. Her loan payment went from several hundred per month to $10 per month. This just doesn’t seem right… as a married couple they filed jointly… so how is this company able to list her income as the only income? Could she face repercussions from the IRS or loan servicer?
Robert Farrington says
You can use just one spouses income depending on your repayment plan and filing status. Here is an article that describes the process: Married Filing Separately For IBR Repayment
jake says
I was recently directed to American Debt Consolidators LLC, after trying to get in contact with Navient. After rereading the contract I had with them I noticed the representative I was speaking to gave me false information and was actually charging me a service fee for 3 months instead of me paying towards my principle, as originally stated. Luckily. my account has not been charged yet and I informed my bank of the issue and I sent an email cancelling my services with them. Is their anything else, you think I need to do as well ? I will be contacting Navient to inform them.
Robert Farrington says
Not much more you can do besides cancelling and being vigilant. Here’s our guide for what to do after.
Monique Sims says
Hello have you heard anything about the western benefits group. I just signed with them and now I am freaking out.
Robert Farrington says
Check out what others are saying about Western Benefits Group in our forum, and always keep an eye out for the red flags we mention in the article.
Merlin williams says
Have anybody heard of a place called united legal discharge? They called me today about discharging my loans. Are they a legit company or are they a scam business? I need answers.
Robert Farrington says
Check out forums – people have posted here: United Legal Discharge.
Yaricsa says
Hello , I just apply to a loan called federal student loan center. I am not sure if this is a scam.. I have made 3 payment. Must make one more. They told me my loan went down. I am nto sure if this is correct. My loan payments where going to Nelnet but it still shows 11,000 with them. Please tell me that this is not a scam please. It’s called federal student loan center
Robert Farrington says
You should read the red flags above and see if any apply to your situation. If you’re ever wondering if the work was being done, you can always call your loan servicer directly (NelNet) and ask them if anything has been done for your loans.
Rebeka says
Hi! com
I m a teacher and went through a company, studentloansconsolidated
Student Loan Consolidated to sign up for an IBR- I did pay a one time fee and they got me a comfortable monthly payment which I paid directly through fedloans.gov.
The first year is up and I went to reapply through fedloans.gov and it was a much higher monthly fee! I called the company back and they use my passwords and everything to get me a similar monthly fee to what I was paying just using my salary and not my husbands like the year prior. Again, there’s a small fee (300) and two month deferment while it gets processed.
I’m wondering how they are able to get me a lower fee and if I am a pet of something I shouldn’t be?
Robert Farrington says
You would have to see what paperwork they are doing for you. Are they using the correct income? Filing status? The correct number of dependents?
You need to see what they are doing to lower your payment, and I think you should call your lender (FedLoan) directly and validate).
Rebeka says
They said they know how to fill in paperwork to best help me. I asked about needing to use joint income and they said they could just use mine. It is a great deal but seems incorrect.
They said fedloans was similar to a mortgage company wanting to get the most money they could out of you.
The payments the loan company want us to make are very high in comparison.
Robert Farrington says
If you are married, and file your taxes jointly, you must always use your joint income. If you file your taxes “married filing separately”, you can use just your income for IBR or PAYE. RePAYE always requires your joint income regardless of filing status.
Learn more about this here: Married Filing Separately For IBR or PAYE.
Jacob Gomez says
I was just contacted by Docu Prep. I spoke with Jordan W. He seemed very informed about my situation and had knowledge about my student loans, my address, and more. Naturally I assumed he was partnered with the department of education knowing what he knew. I was told that I could make 4 payments of $199 and then $8 a month thereafter for 120 months. Seemed like a good idea since I’ve been having trouble with my current payments. I signed his documents he sent. I literally just got off the phone and did a search of the company and I’m getting mixed reviews. Not sure I did the right thing.
Robert Farrington says
Hey Jacob, make sure you read the article above and look for any red flags when dealing with a third-party company. You can also read about other people’s experience wit this company in our Student Loan Forum.
Mike says
Has anyone dealt with Allied Doc Prep about loan forgiveness Or US Advantage Group? Wondering what was their experience.
Robert Farrington says
There have been some posts in our forums you might find helpful: Allied Doc Prep. Also, just make sure you read the article above before making any decisions about working with a third-party.
Alyssa says
Has anyone heard of Academic Aid Center?? They are accredited with the AFSLR apparently. They said they could forgive my 54K in student loan debt through the PAYE program however I had to pay 266 for 3 months beginning in 3 days!! I said I couldn’t afford it and the guy just seemed really pushy.. I ended the call and began to look them they sent me and email about them and website looks legit but my gut said “no” however if anyone has any advice ill take it. They also stated that after I paid the 800 the gov would forgive the remaining balance (54K) …
Robert Farrington says
You need to read the article above, specifically the section about red flags, and make your own decision. I can tell you that the AFSLR is simply a trade group, and being accredited by them doesn’t mean anything. It’s the same as Target and Wal-Mart being members of the National Retailer Federation. It means nothing.
Eljay says
Overwhelmed, 160 thousand for a communications degree. Graduate employed at 31,000 fed and pvt loans repayment over earnings what’s to do? Premier student loan is it real? They 32,000 forgiveness my fed loans, please looking for the light in my student loans darkness.
Robert Farrington says
Sounds like a rough situation. You need to take action on your Federal loans quickly – get on an income driven repayment plan immediately.
As for your private loans, there aren’t many options. You can find them here: Getting Help For Your Private Student Loans.
As for using a third-party company, just make sure you read the article above and look for any red flags.
Kerry says
I’ve had a similar situation with a company called elite consulting services for student loans the numbet is 8448511789
I paid over 400.00 and was suppose to have another payment of the same amount taken. Out but after reading these comments i called and canceled my card so the payment won’t process. Please tell me I haven’t been scammed. I’ll cry
Robert Farrington says
Only you can know if what you paid for is being done correctly. You need to read the red flags above, and ensure that everything you paid for was processed. If not, simply follow up with your lender.
Here’s an article about What To Do After You Think you’ve Been Scammed.
Tamara Rodriguez says
Please help before reading this my daughter has just today signed up with PRemier Student Loan Center and gave her Bank info to pay for some loan forgiveness program that they claimed was a class action lawsuit called the NAvient LAwsuit which we did see info on the web for from Forbes mag to Market watch
today they just said that 16+k would be forgiven and put my daughter into some payment plan giving her via email a break down of payments etc. Please help
Robert Farrington says
Yes, there is a lawsuit against Navient, but if you read the articles, it means nothing for borrowers. It’s between the government and Navient.
As for your daughter’s situation, it’s fine to pay a third-party company, as long as she realizes what she’s paying for and ensures that all the work is completed on her behalf. It’s like paying a repair man – you could fix the sink yourself, or you could hire a plumber. If you hire one, make sure they actually do the work correctly.
Vicki says
I have paid the4 amount to it my loans consolidated. Can I get my money back? After reading all of this I feel that I have been scam.
Robert Farrington says
You need to read through your contract with them and see what their policy is.
Chances are, if you already had the work completed for you, you cannot get a refund.
You might find this article valuable: What To Do After You’ve Paid A Company For Help
Elizabeth says
I have a question. Do you think docuZoom student loans is a scam? I just signed up with them. But some stuff from your article sound like the might be a scam but at the same time the seem like they are not. The had charge me the first month but I not sure if the had pay anything towards my student loan.
Robert Farrington says
Only you can make an opinion about this company. However, we urge you to read the red flags above and make an informed decision.
Remember, everything can be done with your Federal loans for free. If you’re paying a third-party company, make sure you fully understand what you’re paying for and what service is being completed. It sounds like you have some questions/aren’t sure about things, so you should definitely get that clarified before moving forward.
Jessie Acuff says
I’ve been contacted by a company called Century Student loan support. I’ve read your article and they do seem like a scam, but not 100% sure. I’ve tried to find reviews on this company, but there seems to be little. I was just curious if you had heard of them.
Robert Farrington says
We can’t help you form an opinion about a company – just look for the red flags above and make an informed decision. Remember, everything with your Federal student loans you can do for free at StudentLoans.gov. If you want to pay a third-party company for help, make sure you fully know what you’re paying for.
billy says
Help I signed up with a company Academic Aid Center seemed to good to be true to get my student loans taken care of. But I wanted to check out if other places that existed where creditable too. I was told that companies listed on this site that is like the BBB for student loans was legit. AFLSR is this true?
Robert Farrington says
The BBB is a private company that acts as a rating service. AFLSR is an industry group that serves as an advocacy platform for third-party document preparation companies. Neither entity will validate that a company is going to do the work you paid them to do. Only you can assess that.
If you want to use a third-party provider, make sure you’re fully informed of the process, know what you’re getting done, and validate that it was completed.
Dave says
I have been dealing with “Student Loan Center of America” for about 1 year now. There website is slcofa.org. I am not sure how trust worthy they are. First payment was big but the future payments are pretty small. They said it will take a course of 20 years. They told me all my loans are transfer to myfedloan.org. I have not yet seen my loans go down and i am worried that I have being scammed. Please, can you give me some advice or if you know anything about this company. Thanks!
Robert Farrington says
We don’t know anything about this firm, but it looks like people have posted in the forums about Student Loan Center – you might check it out.
You need to read the article again – it gives you specific things you should look out for when working with any third-party firm. If you’re concerned about working with them, here are steps to take.
Sarah B says
Help I think I have been scammed, I received a phone call from the united student loan assistance center. I just signed up with them. I have not made any payments yet to them. Are they even legit? Is there a way to get out before they take any money from me? Please help .
Robert Farrington says
You need to read your agreement with them about cancellation. Without any knowledge, typically not paying cancels the agreement.
Sarah B says
OK so according to my agreement, it says client may cancel agreement at any time with a written notice to USLAC prior to being approved for federal student loan consolidation minus 50% of the underwriting and enrollment fee. what does that mean??
Robert Farrington says
It means you need to send them a request in writing you want to cancel – I would email and mail it – and they will only charge you 50% of what you agreed to. A firm discussion with them might get that waived as well.
Kesha says
Have you heard of Title4services? I signed an ageeement, called to cancel a week later and they said I must pay and now they have put it on my credit report. What can I do to have it removed legally? Quote laws or reference someone that can help me with this.
Robert Farrington says
You would need to read the cancellation terms of your agreement with them. Every company operates differently. What does your agreement say is their cancellation policy?
Second, you could have a stern conversation with them – let them know that you’ll be contacting the CFPB, your state’s attorney general, and more if they fail to refund you. You could also dispute the charge with your credit card company – but that doesn’t mean that they still can’t ding your credit. You would then be left to dispute the issue with the credit bureaus.
Alison says
Just got off the phone with Premier Student Loan Center. They told me that the Department of Education would pay my Navient loans in full, roughly 46k, and then I would pay them $273 for the first 3 months and $56 each month after. I nearly cried. Ok, I DID cry. I have been paying these loans for 10 years and currently owe more than what I borrowed.
If I’m understanding correctly, I’d be paying them to file paperwork for existing programs found on studentloan.gov but I can’t deduce what programs I would qualify for that result in such a drastic reduction. What am I missing? I almost want to just take the risk with them since, in my current state, I’ll be drowning in this debt well into retirement age.
Any advice or insights you have would be greatly appreciated. Thanks.
Alison says
To be clear, the $56/month would be paid for 20 years and then the rest of the loan forgiven…
Robert Farrington says
You can find what programs you would qualify for here: Student Loan Repayment Estimator.
If your numbers aren’t matching up with what the company told you, you want to be clear exactly what they are applying on your forms to ensure they are correct. Even if you pay a third party company to help you, you’re still liable for what you submit on government forms (just like you would be on an IRS tax form).
Michelle Guajardo says
I have made my last payment a month ago to USA student loans and I think I’ve been scammed now… what do I do?
Robert Farrington says
What makes you think that? What did you pay them to do? Did you follow up with your loan servicer to see if anything has been done on your loans?
Your first step should be to contact your loan servicer and validate. Then, contact this company. Beyond that, we break down some steps you can take here: What To Do After You Think You’ve Been Scammed.
JayKayo says
Hello Robert!
Im not sure about a company called Performance SLC (Student Loan Consolidation) who called and said all of the fancy jargon about processing paperwork for $200 dollars. Well before they asked for the enrollment fee, I gave them my tax return which had my SSN on it, where I work, and my current address. When they asked for payment I said no and no payment info was given to them. As soon as I hung up the phone with them, I had this very uneasy feeling. Should I be nervous about identity theft or fraud?
Robert Farrington says
I would be any more concerned than you would be on a daily basis. Just monitor your credit and cards and watch for anything suspicious.
Brian S says
Have you heard of a company call 99 premier services. They claim to do federal student loan consolidation for $400 t0 $1500. I was considering them?
Robert Farrington says
We’ve never heard of this company, but encourage you to do your research, search the forum, and look out for any red flags above before proceeding with any third party company.
Remember, student loan consolidation can always be done for free on StudentLoans.gov or by calling your lender.
Roger Smith says
This company “Student Loan Forgiveness Center” calls me sometimes several times in one day. They apparently have a way of disguising their telephone number. It appears as a local cell phone number but when I dialed it right back I got a gent who denied knowing anything about it. He sounded confused and therefore sincere. Where do they get their sucker list? I have a couple of problems with this, first I NEVER had a student loan, and number two I am out of college over forty years!
Robert Farrington says
They buy phone numbers from all types of places sadly. You can always report them to the FTC.
Johan says
Hi Robert,
Thank you for insight. Higher Level Processing contacted me, my-hlp.com. I requested background information from the rep who called me, and I am doing my homework (reason I am reading your replies to above mentioned questions). I am of course curious in HLP since they claim not to be a lender, bank, or consolidation company. Does this mean they are indeed a docu-prep company?
I’m interested to hear if anyone has done business with them.
Also, I am exploring StudentLoans.gov, however, I fear the help I may receive will be limited.
Thank you,
Johan
Robert Farrington says
It sounds like they may a docu prep company, but you’re the one the spoke to them – you would need to assess that via your conversation with them about what specifically they would do.
Remember, everything with your Federal loans can be done for free, and it’s straightforward because it’s the law. There isn’t any negotiating or magic that can happen – it’s not allowed under the law. Private loans have more flexibility, but it’s typically a hard path to take unless you’re really in financial duress.
My question is, what are you looking to do? StudentLoans.gov and your lender can handle everything. If you need guidance, your own education and research could lead you there, or you could pay a company.
If you go the paid route, research the company, know exactly what they are doing for you (what programs, what documents, timeframe, how will it be validated that you’re in, who do you make payments to, what if your repayment plan is not approved, etc.). The big thing is, just like doing your taxes, you can work with a third party, but at the end of the day, it’s your money – and nobody cares more about your money than you.
Johan says
Thank you sir, I’m following due diligence guided by your principles.
Sarahmarie says
I went through Titan Inc and was told they would charge 99 a month for 5 months then 49 for 18 months ( 1377 total) to get my loans out of default and wage garnishes lifted for 31,000 and that is the 0.00 payment for 300 months. I signed all the paperwork and don’t know if I was scammed more so charged for a document prep service. I’m so lost in anymore it seemed like a light at the end of the tunnel! Now I feel foolish
Robert Farrington says
Did they do everything you paid for them to do? Did you check with your lender directly to follow up on the progress? Who were you making these payments to? Did you make payments to your lender as well?
It’s not a scam to pay a company and they do the work. It’s only a scam if you paid them and they didn’t do anything for you.
Tyler says
I just wanted to say thank you for putting this out there and making it free. It was a huge help.
Stacey says
Has anyone heard of AIDNEST.com? Apparently my daughter received an email from this company telling her they would set up a payment plan for her student loan. She never told me about this. I later found out she spoke to her bank to question a double payment & was told this may be a scam. She paid them $120 for 5 mos & then $19/mo from then on. Her bank told her they couldn’t help her recover the money but they did cancel her debit card etc. She’s out roughly $650+. Is there anything she can do now?
Robert Farrington says
If you paid the company and they didn’t do what was promised, you can follow these steps: Steps To Follow.
Howard Slaughter says
Have you ever heard of Select benefit Services and are they legit? Thanks.
Robert Farrington says
We can’t form that opinion for you. You should read the red flags above and assess for yourself when vetting a third party company.
Remember, that you can do everything for your Federal loans for free at StudentLoans.gov or by calling your lender and working with them.
You might also read our Student Loan Forum and see if anyone has had an experience with them
Daisy says
Has anyone heard of Clarity Solutions Center LLC? I got a letter and I called them. I didn’t give them my password but I got an email saying my password was changed, the lady on the phone gave me a temporary password and that’s what it had been changed to. I worry that they may have my SSN now. I immediately changed my password once I got the notice. I called and asked why my password had been changed and the lady said she just used the temporary password to pull up my loan review. What can I do to find out if any info was retrieved?
Robert Farrington says
Call your lender directly and ask them. They can also help you for free.
There are also topics on this company in our forums.
Susan Vazquez says
I just got scammed to by premier services also called 77 elite ! I can’t believe I fell for it but I was desperate since I owe so much on student loans and can’t afford it! They tell me I can’t cancel and won’t give me back the fees I already paid plus they say I will be sent to collections for the remainder of the balance ! I have paid $249 already and now owe $250 !! How do I revoke power of attorney!
Robert Farrington says
If you want to change anything with your loans, call your lender and they will walk you through it.
You might also find this article helpful, especially if you want to report this company.
Jay says
I messed up and signed up through premier student loan center. Made a first payment using credit card. Once i did some digging i found that the BBB grade was bs and the company was a scam. I emailed the company demanding my account be closed and get a refund, i was contacted by SL management who said they were there processing company and my file has been closed and a check is being sent out with my full refund. I made a complaint on BBB and filed a report with the FTC. I also spoke with the financial consumer protection agency. Have you ever heard of premier student loan center or SL Account management, or i guess there connected.
Mckenzie Long says
I signed up for the same company and found this article 20 minutes after. I have called and cancelled but they have my bank information and my SS#. Did they give your money back? Have you had and fraudulent activity happen since then?
Kristina says
Is it safe to refinance through your credit union? There are no origination fees, and it was an option given to me directly from my credit union (Bayport Credit Union). They are called Student Choice.
Robert Farrington says
If your credit union is insured by the NCUA, it should be fine. However, they might not be the best choice. We strongly encourage you to shop around to find the best companies to refinance a student loan. It takes about 20 minutes to get quotes from 3-5 companies. That could save you a TON of money.
Second, many companies offer bonuses if you refinance (sadly, not credit unions). You might find these student loan refinancing bonus offers worthwhile.
DeeDee says
I didn’t sign anything but I gave my ssn and a bunch of personal information (including my checking account information) to a person on the phone who told me that he “worked with” the Department of Education. I said I needed to see everything in writing and look over it calmly before I signed anything. When I skimmed over the documents it showed that the company was named “Student Loan Relief.” I told him that I didn’t see the words “Department of Education” anywhere or the amounts of my future loan payments, just the enrollment fees. He told me “I never said we were the Department of Education” and I said that when I didn’t want to give them my credit/debit card information he told me that “the Department of Education doesn’t work that way.” I’m furious and would like to report them but I don’t know where to do so. Can you point me in the right direction?
Robert Farrington says
You can file a complaint about any company to the CFPB or FTC. You can also report them to your state attorney general.
B. A. Ware says
I believe I have been scammed as well; and I should have listened to all the bells and whistles that were blasting off internally within me. My payment of $167.50 continues to leave my account, at times, in the hole; the person on the other end said it would be 4 payments…..I am so upset with myself.
Katherine says
Hi,
what can I do, when my loan is in “the Loan Rehabilitation Program” there is a agency in charge of all my loans, I have called fafsa to see whats going on, but they always forward me to this program. they are adding over 15k on top of my student loans. what can I do?
Robert Farrington says
Learn about student loan rehabilitation here.
Roel says
I received a letter from Dept: National Student Debt I called them to see the options on the forgiveness program or lowering the payment and I gave them my SSN and they made an FSA username and password and that’s all I gave them didn’t sign up for anything. I went back on the same day and changed password on FSA and a couple of other information there and also I did a credit freeze just in case. Should I take any other course of action. I’m worried they might try something with my ssn
Robert Farrington says
All you can do is monitor your credit and information to ensure nothing happens.
Katie Dunn says
I have spent hours on the phone today with studentloans.gov and Hope Credit (based out of Carlsbad, CA).
Hope Credit basically said they’d consolidate my loans, get me a payment of aprx $300/mo, and in that monthly payment charge $39/mo for their services. Additionally there is an upfront fee of about $600. They say that they will refile the paperwork each year for the PSLF program and also help with the exit paperwork.
BBB has given them an ‘A+’ but there are no reviews.
I am inclined to work with them, however I want to see if anyone has any experience or advice.
Robert Farrington says
If you were on the phone with your lender (not StudentLoans.gov), you’d realize that you can consolidate your loans for free online. You can also change your repayment plan to an income-driven plan to get a lower payment.
However, if you want to pay a third party company to help you, you’re more than welcome to. Just research them, understand exactly what they are doing (it’s like your tax return – you’re still responsible for what get’s filled out and submitted), and validate it’s done.
Good luck!
Katie Dunn says
Second Question:
My husband and I filed married jointly, however he is in no way responsible for the repayment of my loans, and we do not have joint bank accounts. NELNET (my current loan servicer) is insisting that his income must be included for determining my payment on an Income Based Repayment Plan. When I spoke to the customer service at StudentLoans.gov, and the representative from HOPE CREDIT, they both assured me that that is not the case.
Doe anyone have any insight?
Robert Farrington says
NelNet is correct – that is the case UNLESS you file your taxes married filing separately. You can read more about this here: Married Filing Separately For IBR.
Jasmine Washington says
Where is the list you said you would provide at the bottom for the loan forgiveness program you recommend? Also, its been almost a month now and the company that’s suppose to be my third party is Nexum Solutions. I have to pay $799 fee for them filing and $19 a month. I called Navient and im $0 out for the remainder of the year. This company I just dot trust them. I’m suppose to make payments to this 3rd party called student renewal program (which is also the same number and information as the Nexum Solutions. I called today and changed my account numbers because my gut is telling me something is not right. And every time I call the same woman answers the phone and there’s a little music then she answers. and yes they told me if i dont make the payment. I will have to pay a late fee and be canceled for non payment and reported to my credit. any feedback?
Robert Farrington says
We discuss your list of options at the bottom of the article – speak to your lender directly, speak to an attorney, speak to a CFA/CFP.
You can handle your loan repayment plan yourself – the options are very straight forward. You never have to pay a third party unless you want to. Even if you choose to, it’s still your responsibility to follow up and ensure that everything is done correctly.
KNW says
Hi,
So the company Student Loan Direct was starting the process with my husband. However it sounded fishy to me 248 a month for 6 months. We cancelled. They said they could get his payment down to $0 to 5 based on his current income. However we file our taxes jointly. If we file for income driven repayment or income based repayment programs based on his last two pay checks (that’s all they needed). Won’t those programs require us to provide our AGI from the previous tax year to qualify.
Robert Farrington says
Yes, you can only use just one income if you file taxes married filing separately: IBR and PAYE Taxes Filing Separately.
michael nunoo says
Please have you head of Premier student loan center. I was told by Rodrigo a representative that i do qualify for loan forgiveness because i work for a nonprofit organization. I just made $199.17 payment and will do that for the next 6 month then reduce to $40. please is this real and if not how do i cancel this because I e-sign some documents.
Robert Farrington says
Read the article above. We can’t help you make a decision or opinion about a company and/or their services.
If you’re going to pay a third party company, realize that:
1. You can always do it yourself for free
2. You still need to follow up and ensure that all work performed on your behalf is correct
3. Something like PSLF (which they are likely applying you for) requires 120 payments/10 years of certifications, so you’ll need to do your own paperwork in the future to remain eligible
Talisha Leach says
I wish I had seen your article before I signed the papers on 9/17/18 with Solevio. So far they have sent me the application for consolidation with incorrect information and when I called refusing to sign it and send it in to Fedloan until they corrected it and sent it back to me. That was a week ago and I have yet to receive the correct application but they took $250 out of my account as the first payment towards the $850 they charging. I thought that was going towards my loan until I talked directly to Fedloan and was told I could do what they are doing myself for free. I was also told that they lied on my paperwork for a forbearance and I was told by them that my payments would be $15.13. I knew that was too good to be true. In actuality they will be around $101 and the program they keep saying I qualify for I am not and I will be in a totally different program. I will be calling first thing in the morning to cancel and also go to my bank to stop payment as soon as they open. I feel like the dumbest person on earth because I usually don’t listen to anything people say on the phone but this time I fell for it.
Erick says
Nexum Solutions?? Anyone heard of them?
J says
Yes, I just started working with them. They falsified my information for my student loan forgivenessand got me to sign a document saying i would pay them $900, but completely mis led me.i javent paid any money yet and I’m afraid I’m screwed. I’ll admit I dont know much about the process though. What is your experience with them?
Christopher says
I have been using this company since August. I paid the $800 and have been paying them $40 a month for my loans. I just realized that Navient has still been emailing me for my loan payments but thought nothing of it. I emailed Nexum tonight to try to figure out what’s going on and to see if they can give me a legit answer. If not, I am going to cancel and contact Nexum since I am a few months behind on my payments since I thought Nexum was handling the situation.
Juan says
Hello, I need help I was contacted by this company named Federal DG. Are they Legit? I found their website but couldn’t find any reviews on them or see them on the BBB. Is this a Scam ? They said they can help with my student debt and for the next 20 years just pay $91.00 a month and they can help with Loan forgiveness. I need Help.
Robert Farrington says
Read the article again and ask yourself what you’re paying this service to help you sign up for IBR, and if it’s worth it. We can’t help you assess a company, but if you slow down and think about your debt a bit – you can decide for yourself if it’s worth paying for help or if you should seek assistance from a third party.
Desmond Lowery says
Hello Juan,
I am dealing with the same company at the moment and like you said, it is very difficult finding information about their program. They basically told me the same thing and it is very difficult keeping up with those payments. I’ve looked all over the web for info but it is very limited. I am now starting to look for ways to remove myself from the program.
Please let me know if you find out anymore information on the matter. God Bless
Kristin says
I had been with them for almost 2 years paying $81.25 a month I just found out that $50 of it was a service fee, plus a few other things and only $10 was actually going toward my loan balance. They have been shut down by the Federal Trade Commission.
Good luck!
Harm says
Do you remember who it was that you talked to? What was there response when you tried to cancel.
Have you heard if Solvelt Solutions
Debbie says
Have you heard of student repayment solutions? I feel I got scammed yesterday and just read this article. Same thing, pay for their services and got a reduction in payments. Not sure what to do.
ali says
has anyone heard of William D. Ford Act? is it legitimate ??
Robert Farrington says
The William D Ford Act is simply the law that allows for Direct student loans and various repayment programs. Any company using it to advertise is likely being a bit misleading.
It’s like saying there’s a Bill of Rights that guarantee you freedom of speech. Yes, it exists. No, a company doesn’t help you with your freedom of speech.
brian says
Trying to help my new daughter in law because she never had to make a payment on her loan for 4 years because she made minimum wage, Once she married my son, they filed jointly and she had a whopper of a payment because my son made good money, She contacted her federal student loan to try to get the loan in her income only and the payment increased even more somehow.
My son, his wife and I were a bit angry because her mother who helped her with finances and was an educator told them and me my daughter-in-law’s debt was only about 10k only to find out later is was 34k. No wonder she was willing to put out 10K to pay for their wedding. I was not there to hear it but she supposedly told my daughter in law that she was making payments in her behalf. ( she is worth supposedly over 700k. That being said, “had to get it off of my chest”
I called a company who has a website.. “studentloansconsolidated.org” who wanted a $500 fee and admitted you can do this yourself but they know where to go and have it done for you. They told me because she is a teacher, (for a daycare center) (no ta public educator) she qualifies for loan forgiveness after so many years. They are not in loan default. NJ is not a common law state so my son is not accountable for her dept. If it goes into default I know they can attach their income tax returns but then my son can attach a form “injured spouse” on his 1040 to get his share of the return back.
All that being said, is there a legitimate federal loan that will only use her income or do they have to file “married filing separate” and end up paying more taxes or every year fie the “injured spouse” He would be more helpful be he has an ex-wife and is paying child support of over $1200 a month.
Any help is appreciated
Brian
Robert Farrington says
They have to file married filing separately, and we break down the whole process here.
Second, as a daycare worker, if the facility is a non profit, she still might qualify for loan forgiveness. Read this guide here: Public Service Loan Forgiveness.
Finally, if these are Federal loans, do not default. It’s about the worst thing you can do financially. Even if he gets “his” tax refund, the loan balance will double about every 2 years you remain in default due to interest and collection costs added to the loan. And there is almost no way to eliminate a Federal loan short of paying it off or loan forgiveness.
Brian says
The daycare she works for is a “for profit” so I guess forgiveness is out?
2nd Question… I assume that the agency that stated they can get her a loan just on her income even if they file jointly is incorrect? Would it need to be converted into a non-federal loan from a private company?
Robert Farrington says
Yes, forgiveness for PSLF would be out. No agency “get’s her a loan” – they are just applying to various repayment plan options.
Converting loans (i.e. refinancing) is NOT recommended for 95% of borrowers. You can get a lower interest rate, but you lose a lot of protections, loan forgiveness options, and repayment plan choices. Read this: Student Loan Consolidation.
CAROLYN Y FLORES says
I gave the “Federal Document Assistance Center” my social security number and address, plus a bunch of info on my past loans addresses. However, I didn’t give account numbers and didn’t agree to anything. What can i do? Should I be concerned??
Robert Farrington says
If you don’t want to work with them and are concerned, the best thing you can do is monitor your credit and other info – just like you would normally.
For your loans, you can follow the directions in the article above.
Ariel says
Can this company use my information (social, ID #, bank info) without my consent? I mistakenly gave them the information before looking into the company and realizing it was a scam. I hung up once I realized and did not sign any paperwork.
Robert Farrington says
No company should use your information without your consent.
Ris says
I have the same issue, but went through with documentation, signatures, and bank info… SOS
Juan says
Hello all,
i am worry now. has anyone heard of First Student advisors LLC?
i have been working with them since September and have done 4 payments already
Vivi says
Has anyone heard of Doc Management Solutions? I think I just got scam ?
Anna says
Have you heard of Students Services Center? I just need to know if they’re legit 3rd party company that helps the students. I paid the 1st month of their processing fee about $250 out of 3, I keep getting a sense it’s a scam especially when I copy and pasted his number in google, there’s been 3 different reports that he was a scammer for student loans and asking for SSN so I called back to cancel today. He transferred me to the compliance dept? to cancel and hope to get a refund back which they advised me that if I do cancel, I won’t be able to get a refund and if I do want the refund, I need to be rejected by forgiveness program AFTER the 3 payments of the processing fees. They told me that DOE won’t see until it’s been processed and referred me to fedloans.gov. Basically saying they’re 3rd party company doing the paperwork for me for the best options possible for my repayment plan but I’m not sure if this is the legit 3rd party company for student loans.
Robert Farrington says
If you’re asking is this company a Federal loan servicer associated with the Department of Education, the answer is no. If you’re asking whether you should use them to pay for help to sign up for free government programs, only you can assess if their service is worth it.
Use the article above for guidance. And remember, at the end of the day, it’s your student loans, so you need to ensure that everything done on your behalf is accurate.
Bruce says
Hello,
Thank you very much for your helpful pages.
I received a letter today informing me that I have a small loan ($1,100) currently held by the Department of Education and that the contact is Default Resolution Group. I do not remember this loan but the school name is correct and the year matches my time in school.
The letter says that my loan was previously held by Educational Computer Systems, Inc. I have never heard of them but they do appear on your list of legitimate student loan debt collectors. ECSI has never written to me or called me.
If you have a moment, I would truly appreciate your opinion on the following.
1. The loan origination date in the letter is 2003. It does not show on my credit report.
2. The letter threatens offset via tax refunds and reporting to credit bureau.
3. If the loan is legitimate, will paying it off suddenly make it appear as delinquent on my credit report? 16 years is a long time!
The date and school make the loan seem like my legitimate responsibility, in which case I will pay. In this age of scams it is so difficult to trust any communication, written or otherwise.
Thank you for your time and assistance.
Robert Farrington says
The Default Resolutions Group is a division of the Department of Education that works to resolve defaulted debt before they send it to a collection agency. If the loan is legitimate, you can usually pay it off in full and avoid anything further on your credit report – but you need to get this in writing.
If you don’t think the debt is yours, you can call and ask them for verification of the debt. This also should be done in writing via certified mail.
Bruce says
Thank you for your prompt reply!
I am not sure about the loan. However the details of the letter and your confirmation that the Default Resolution Group is legitimate lead me to believe I do owe this money.
I am curious as to why it does not show on my credit report. I am afraid that acknowledging it will cause it to suddenly reflect on my credit report.
As you suggested, I will ask for verification of the debt in writing. If I do owe the funds, I will also request the terms of repayment (credit reporting) in writing. Is there any other specific information you suggest I request in writing via Certified Mail?
One last question if you do not mind. Are you familiar with loans being transferred from obvious third party debt collectors to the Department of Education?
Thank you for this valuable resource.
Robert Farrington says
Here’s a good article on what to write: Debt Validation Letter.
And yes, this is what happens when loan is in default. It goes from your loan servicer, who tries (usually) to get payment), then it get’s sent back to the Department of Education Default Resolution Group, who attempts to collect. If they fail, it gets sent out to a third-party debt collection service.
Michael b says
I have been in talks with a nexum solutions of a student loan forgiveness plan as I am an employee of the DOD. They advised that they were able to get me fully approved and the monthly payments were going to run around 135 a month after the processing fee of $800 was paid. They have worked with me in taking that payment in two installments. The term is 10yrs if payments and my loan balance at that time would be forgiven. Does this company and situation sound like a legit company? First payment due on 5/3/19 so I want to figure out if this is a scam so I have time to stop payment. Thank you
Robert Farrington says
The only 10 year loan forgiveness program currently offered is Public Service Loan Forgiveness. You can learn about it here and decide if you want to pay for a third party to help you or not: Public Service Loan Forgiveness Guide.
Sam Kubli says
Heads up, calls from 630-761-5796 – everytime I call back I get a new representative who asks for my loan information, amount and then when I ask what company they are calling from they hang up.
Michael Reeves says
I really need some assistance about getting out of a contract with a company that is a scam. It’s called the Start Fresh Program LLC. I have tried to cancel for last 5 days and the women keeps hanging up on me and says to calm down. I stopped payment at bank but the company itself says I can not cancel. Any ideas on what to do about this? Any help be appreciated. Thanks
Robert Farrington says
This article walks you through step by step what to consider.
Debra VanOrden says
How do I stop the calls about student loans? I recieve them several times a day and I don’t have a student loan. Could someone have a loan in my name and how do I find out if someone took a student loan out using my name?
Robert Farrington says
This is a problem not unique to you – this is the big issue with robocalls that is making headlines lately.
But, to be safe and double check, you can see any loans in your name by checking your credit report. You can read this guide for info: How To Find Out Who Owns Your Student Loans.
Patricia Mulholland says
Do you know of a company SLO Processing? It appears I have been scammed. After months of no payment on my FED loan — after a sign up fee of $700 plus $39 per month to cover re-certification fees, I now have a past due balance of $2586. The website is still up and I received an message from owner Michael Ryan this morning, suggesting I send in recent income info for myself, as they have our joint tax return with income too high to req-qualify for the program.
Thank you
Patricia
Omar says
Hi! Ive had been contacted by Allied Interstate to settle a $400k (yes, four hundred K, after a bunch of penalties and fees that have nearly doubled the principal) for approx. 45k. I did not have the money at that time and I also was a bit skeptical cause it did sound too good to be true. In the end, my accountant found out that the offer was legit. Once I got to save enough to make a payment, I called Allied but they said that the loans had been taken from them by the original lender. So…I missed the chance on an unbelievable deal. BUT, a few months a go, I got a similar letter, this time from Financial Assets Management Systems. Same thing, but this company wanted 145K to settle the same loan. Is this company legit? What are your recommendations on this?
Thanks!
Robert Farrington says
Are your loans private or Federal? Is this an actual settlement offer, or is it some type of plan to strategic default in hopes of a settlement? FAMS is a student loan debt collector, and they may be offering you a legit settlement. If you can afford it, it could be worth it – especially if you can get the default deleted from your credit report as well.
Jim says
My lender is Navient, and I have 2 loans. I fell for a scam to consolidate the loans but they are still 2 separate loans. Since they have not been consolidated, do I have the grounds to cancel contracts with the scammers?
“Client may cancel this contract any time with written notice to [withheld] prior to being approved for Federal Student Loan Consolidation. Any fees paid to [withheld] at time of cancellation shall be deemed earned as long as [withheld] has acted in good faith in performing services on behalf of Client. [withheld] may terminate this Agreement upon a breach by Client of this Agreement by providing written notice to Client.”
Robert Farrington says
Sounds like it since you are prior to being approved. Most companies won’t fuss about it as well if you threaten to follow up with things like the FTC or CFPB as well.
Kevin says
Hi Robert,
You mention in your great article that “Working with a company, like the ones recommended below, can be useful” but I read through the article and then all the comments and can’t find where you list any that you recommend as “useful”. Can you repost the list? I’m looking into a few of these and want to make sure I know the “useful” ones vs. the scam ones. Thanks so much!
Robert Farrington says
Under the “where to get help” section we have the resources/companies we recommend listed. They are the only “useful” ones we recommend – StudentLoans.gov, finding a CFP in your area, or maybe a lawyer.
Daniel Cooper says
Mr. Farrington,
I finished my MBA last year. I received a final notice letter back on 6/8/2020 for a Student Loan Consolidation and Payment Reduction Program. The program offered no credit check, interest rate reduction, lower monthly payments based on income and family size and loan forgiveness. I called them and signed two e-signatures through ameri doc prep. They asked me for 800 up front, or two payments of 549 due on the 17th of July and the 21st. I called Federal Student Association FASA and they informed me that I had indeed been scammed. The lady at the feedback center for FSA, told me to close both of my bank accounts and my debit card, which I did and opened a new account. I told her I felt like a complete idiot for signing those documents with Amerifed. She advised me that I was one of many borrowers who have been persuaded into signing documents for student loan consolidation and payment reduction. She informed that I could consolidate my 7 loans for free, no charge given and that I was the 5th caller she had received that day who reported this scam. The company, Amerifed, told me that I would have to pay 39 dollars a month for 240 months and that after 10 years, I could qualify for loan forgiveness. I have not paid the initial fee and I was told by everyone I talked to this week not to. I do have to call Nelnet today to see if this company did consolidate my loans or attempt to.
My question sir, if you can answer. If I signed two e signatures to agree to this consolidation, can they legally hold me accountable for not paying the initial and monthly fees I aforementioned?
The correspondent at the FSA feedback center informed me that because I have their name a case can be created if they decide to hold me legally responsible for agreeing to their terms.
Robert Farrington says
You would have to read the cancellation rules in whatever you signed. Many state if you don’t pay, it’s naturally canceled. However, they could hold you to it – but I doubt they would since they likely don’t want to run afoul of the Department of Education.
Adrian says
did you give them your bank info and ssn?