Student Loan Scams
Student Loan Scams Come In All Shapes and Sizes
If you have spent any time researching student loans I sure hope you have come across the scam artists that are prevelant in this lucrative industry. The most prevelant student loan scams are telecommunications, snail mail/email and consolidation or buyouts.
Let's not forget about the corupt CEO's, university officials and politicians. I'll save those stories for later, but trust me, we are shaking in our boots hoping to HE** we made the right choice by sticking with our local banks to receive our federal monies.
Student Loan Scams via telecommunications:
We've had student loans for a while now and we've never received a phone call from our lenders. That should be clue number 1. I just read an article about a couple of women in the mid west that pleaded guilty to phone solicitation and a bunch of other charges related to student loans. People will do just about anything to get your money and they can sound pretty "official" so our advice is hang up if you get a phone call.
If for some reason you do get a call and they claim to be your lender, hang up and call your lender directly and speak to them. If it is legit then they will help you, if it is not you just saved yourself from hassles upon hassles.
Student Loan Scams via Snail Mail/Email:
Nothing is more convincing than receiving an envelope from the federal government concerning your student loans. It can catch you off guard and really convince you that you need to act NOW. It's scary, but normally you don't receive these "UN-official" enveloples until it's about time to consolidate your student loans. I strongly urge you to visit Amazon and pick up a copy of The Student Loan Scam written by Alan Collinge. Or click the this link: The Student Loan Scam
Collinge had a personal experience with student loans you need to read on his book review at Amazon. He has made it HIS CRUSADE to alert parents and students alike about the lucrative business of Student Loan Scams. And his involvement with Capital Hill is commendable and we should all support it. His website will give you a great deal of information as well. studentloanjustice.org
We do receive from time to time various lender emails with the college name in the subject line: Discover Student Loans at Heritage College or something with the college name in it. I don't remember ever receiving these types of emails for our son who was attending a community college.
These emails really don't scrare me as much because the delete button is so close and Discover is one of our lenders. I'm really not sure how many lending institutions will send you emails trying to scam you but I do know that some "up and coming" companies will buy a list of college students (with name, phone number, email address, mailing address) and start bombarding you with emails, phone calls, official letters, etc. Again, use your judgement and always call your lending institution with questions.
Student Loan Scams: Consolidation or Buyouts
It simply amazes me how often you get hammered with phone calls, snail mail and the like the second you are within a few months of graduating from college. These so called "national lenders" will stab each other in the back to get your business because there is a lot of money to be made in the consolidation industry.
Consolidate Student Loans is one of the most researched terms in google because this industry has grown faster than the oil companies. Tuition is doubling faster than inflation and more parents/college students need money to help them earn a degree. The sharks are out there, so be careful and always sit down and talk to people you trust. I'd rather pay an extra percentage point than to get scammed and lost our credit rating for life.
If you have found a lender and started paying off your student loans sometimes a company will come in and buy your student loan from your lender. Why? Because they will more than likely find a sneaky way for you to default on your loan and charge you some ungodly amount of interest and extend your payment schedule so they can make money.
Again, I repeat if you want to learn how to safeguard yourself from lenders and corporations that buyout your loans, please invest $16 and read The Student Loan Scam. It will save you time, money, headache and maybe your credit rating.
I can tell you that we are sticking with our local banks and people we know when it comes time to consolidate our student loans. We've even discussed an alternative plan with our lender if for some reason they sell our loan to someone else.
Final Thoughts on Student Loan Scams
If you have good or if you have a co-signer with good credit it will be extremely easy to get a student loan. It can be extremely hard to pay off a student loan (of any amount) if your lender doesn't have your best interests at heart.
Alan Collinge and his book The Student Loan Scam was no doubt the best investment we have ever made. I am so glad we purchased it and I am so glad that we are preparing ourselves for the time when we have to consolidate two different student loans in our household. Knowing what to expect, learning from other people's experience is the sure way of keeping yourself solvent enough to keep the sharks a hundred miles away from us.
Here is his book at Amazon (click on the book below), get it or walk across the mine field blindfolded.
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