Over the past few months, there has been a lot of talk about student loan relief. Federally-held student loan payments are on hold due to COVID. Some private lenders are also offering forbearance and lower monthly payments.
Sadly, scammers posing as legitimate lenders can take advantage of the hardship caused by the coronavirus pandemic by offering to pay off or at least pay down your student loans. All you have to do is pay an upfront fee and provide some personal information. Sound too good to be true? It likely is.
If you’re looking for immediate student loan relief, Credible can help. Credible can be handy for comparing student loan refinancing rates from multiple lenders without affecting your credit score.
But be diligent and do your homework before picking your best option. Learn to spot these 6 student loan forgiveness scams.
6 “too-good-to-be-true” scams that are just that
1. You are charged a fee. Participation in student loan forgiveness programs is free. It is illegal for debt relief service providers to ask for money—upfront or monthly—to settle or lower a loan before the service is carried out.
2. Not a DOE provider. There is a shortlist of debt service providers that work with the Department of…