Is student loan debt consolidation a scam?

Is student loan debt consolidation a scam?

Student loan debt has been a hot topic in public conscience for a number of years now. It doesn’t only affect the recently graduated but those who have been out of school for years as well. Many college graduates go for most of their lives just trying to pay the interest off from these loans. It’s bad enough that these graduates face mountains of debt due to predatory practices performed by the lenders but now an army of scammers are looking to capitalize on their hardship.

You may hear these commercials on the radio, see the fliers in the mail, or see the signs along roadways promising student debt relief or consolidation. A number of these so-called services promise to get you a better interest rate or lower your payments. All you have to do is pay a nominal fee to get the ball rolling. But instead of getting a better rate, these con artists just take your fee and disappear leaving you with more debt than when you started.

The Better Business Bureau recommends that if you’re having trouble paying back your loans that you should contact your lender directly to try to negotiate a lower payment. Also, you should never pay up front for any debt service until they give you results first. Never give a debt consolidation service power of attorney as they can use this to take over your loan and make your payments even greater. While there is no quick and easy solution to alleviating the ever-mounting student loan debt problem, keeping these tips in mind will prevent you from it becoming an even bigger problem for you.