Millions of Americans have taken on student loans to pay for their education, which means the criminals have a myriad of goals that are already worried about debt.
Currently, federal student loans are issued at 0% interest and do not require any payments until September 30th, so anyone contacted should be wary of any calls that their federal student loan payments are about to resume.
There are a few things to think about if you get a call about student loans not provided by your credit institution:
- Who is the company calling? Is he trying to sell you a loan or payout deal?
- Are they promising to cut your monthly payments? If so, how much?
- They say they can get a loan forgiveness and say if it will be a quick process?
If you haven’t heard of the company before, try doing a little research before calling back or answering their questions. Do your own research and don’t just rely on information from a call or voicemail.
The fact that the caller says that they can reduce your monthly payments does not mean that this is a scam. However, many payout companies charge you for what you can do online in less than 30 minutes.
A common way to reduce your monthly payments is to change your repayment plan. If you’re struggling to meet your ongoing monthly payments, you might want to switch to an income-driven repayment plan. According to them, monthly payments are limited to a certain percentage of your income.
Finally, if someone says they can write off all or part of the loan quickly, be very skeptical. Federal loans can be forgiven, but it is a long and complicated process. The most common program is Government Service Loan Forgivenessand it takes a decade.
Because the process is so complex, even people who are doing the right thing may be denied applications. Last winter The US Department of Education has approved a total of 3,500 applications of over 168,000 PSLF applicants who have met the job requirements.
If you have questions about federal student loans, please contact StudentAid.gov or contact your loan provider.