Published On: October 17, 2020
The following is a warning from the Federal Trade Commission regarding scams you may receive about your student loans. Read the warning and watch the very short video.
Having trouble paying your student loan debt?
You might get an offer that says you can reduce your monthly payment, or even reduce your overall debt. The offer might look like it comes from the government…and they might tell you that, first, you have to pay a fee. But it’s illegal for a company to ask you to pay a fee up front before they get you the promised relief. And it’s illegal for them to pretend to be from the government.
Because of the pandemic, people with federal student loans have some protections until December 31, 2020. People with student loans can also take steps to handle their student loan debt.
Start by learning to spot the scams – click here for a YouTube video created by the FTC.
TIPS:
- Never pay a company upfront before they’ve gotten you results (see it in writing).
- Scammers sometimes pretend they are with the government.
- No company can promise you fast loan forgiveness
- Protect you FSA ID. Don’t give it out to anyone, for any reason.
- Go directly to the source:
- for free help with federal loans, visit Studentaid.gov.
- For private loans, contact your loan company directly.
- Scammers can “spoof” the phone number for legitimate companies. Don’t assume the caller id will have the caller’s true phone number.
Did you get an offer for student loan debt relief?
Then, read more about managing your debt.
Have you spotted a scam? Report it to the FTC at ftc.gov/complaint. And be sure to keep up to date on what the FTC is doing by signing up to get Consumer Alerts.
MUSINGS BY DIANE:
Never respond to ads on TV, mail, the Internet or door-to-door offering to “help” you. Someone has to pay for those ads – that ends up being you. Most of these are scams, but by the time you find that out they will have moved on to new victims. Ninety percent of those who use their services will never report them and even if someone does, it will take years to stop them.
If you have questions – do your own research. Look for government resources (they usually have .gov extension on their website). Ask people who are experienced in this area (electrician, medical, or lawyer). Lastly, use your common sense and don’t be persuaded by fancy talk (this is a theme you will see throughout my Musings).
– Diane L. Drain
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
“You folks are the BEST OF THE BEST in Arizona.” M.H.
You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.
“My only regret is that I didn’t find Diane sooner.” K.H.
I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.
“Filing for bankruptcy can be a stressful life event” R.A.
Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.
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