Sallie Mae Knocking at Your Door Post Graduation? Watch Out for Loan Companies that Claim They Can Provide Loan Reduction or Forgiveness

It’s that time of year again when students have finally graduated college. They are now able to take a deep breath and look back on the milestone they’ve accomplished after years of hard work and sleepless nights.

Unfortunately, this moment of relaxation doesn’t last long once the Government begins sending reminders that it’s time to start paying off your student loans. Being a new graduate is stressful enough – being expected to find a job in your field right out of college, paying your own bills, and moving out of your parent’s house.

Paying off the debt accrued during college not soon after graduation can seem overwhelming, which is why scammers are taking advantage of this opportunity.

There have been reports of online ads marketing to new college graduates claiming to be able to “Erase Default Statuses in 4-6 Weeks!” or callers posing as a loan company saying they’re able to help reduce the amount of debt you owe. These claims are meant to sound enticing, but will in time inflict more harm than good!

To help protect yourself from falling victim to student loan debtors, consider the following:

  1. You shouldn’t have to pay an up-front fee. If you pay up-front to reduce or eliminate your student loan debt, you might not get any help or your money back.
  2. No one can promise total loan forgiveness. It is impossible for a company to determine whether you are eligible for programs offering total loan forgiveness before knowing the details of your situation.
  3. Only scammers will tell you to stop paying your student loans. Often time’s scammers will advise you to not speak with your loan company so that they can negotiate a better settlement for you. However, not making your payments on time can result in your loan balance to balloon and damage your credit. Source: BBB North Alabama and FTC.org

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To report a scam, call your BBB at 256-533-1640 or go to the BBB Scam Tracker. To find trustworthy businesses, visit bbb.org.