By: Dustin Humphrey

Student loan debt is stressful enough on its own, but some scam companies are making matters even worse for borrowers. Promising “student loan debt relief”, these companies are preying on distressed borrowers, promising thousands of dollars in savings on student debt.

The catch? They are charging illegal upfront fees and claiming special expertise or a relationship with the Department of Education, only to enroll borrowers in payment plans that are available to anyone for free.

Borrowers caught in these scams find themselves with more debt and less time to avoid financial distress or default.

Here are warning signs that a student loan debt relief company may be trying to scam you:

1. Pressure to pay high up-front fees.
2. Promises of immediate loan forgiveness or debt cancellation.
3. Demands that you sign a “third party authorization.”
4. Requests for your Federal Student Aid PIN.

The attorneys at Skeeters, Bennett, Wilson & Pike want to make sure you don’t accidentally fall victim to student debt relief scams. Read more details on warning signs here.

If you think you may already be tied up in a student debt relief scam, our attorneys suggest you get legal help immediately. The sooner you act the better. Don’t wait until it’s too late.

Source: http://www.consumerfinance.gov/blog/consumer-advisory-student-loan-debt-relief-companies-may-cost-you-thousands-of-dollars-and-drive-you-further-into-debt/

 

Dustin joined the SBW&P team in 2010, coming to us from one of the oldest firms in Cincinnati. He earned his undergraduate degree from Bellarmine University, summa cum laude, and his law degree from the Salmon P. Chase College of Law at Northern Kentucky University, where he graduated cum laude. Dustin’s law practice includes personal injury law, medical malpractice law, business law including corporations, LLCs and business planning, real estate law, probate law, estate planning, employment law, and family law.