Many companies that help parents and students get student loans are legitimate. Referred to as student loan consolidation firms, these companies do their best to ensure their clients choose the right options for getting and paying off student loans. Usually, these companies assist borrowers to get into a range of programs that lenders had previously denied them without valid reasons. For all the efforts of various agencies and regulatory commissions, there are also scam and disreputable companies in the field of student loan consolidation.
Research the various student loan forgiveness plans
Doing a bit of homework is the best thing to do when seeking assistance for consolidating and paying back your student loan. Do some homework of your own so you know what you are getting into. Find out exactly what loan types are available. Look into the various programs offered by the government to help forgive or reduce debt. There are lots of options, from civil service loan forgiveness and teacher loan forgiveness, to balance based-repayment plans and income-based repayment plans. As a matter of fact, loan companies are not properly educating borrowers, otherwise scammers wouldn’t have it easy capitalizing on people seeking help and loan forgiveness & consolidation companies would not be needed.
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Check the backgrounds of different companies
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Before you give out your credit card, do a bit of research on the company you’re dealing with. Is the business accredited, according to the BBB? Have previous clients reviewed them? Are you getting a service or is it something you can do on your own for free? Check out the company’s reviews on Google or BBB. How many stars does the company have on Google reviews? Also make sure that the firm is a member of an organization that comprises student loan consolidation services that have shown transparency and honesty.
Choose the most suitable company
You can choose the right company yourself. Spend hours researching various forgiveness opportunities and joining government programs. You also can make payments every month to different lenders. But this isn’t as simple and effective as using a company that knows what programs are available and makes your particular case their priority. A qualified and reputable company will have personalized and responsive customer service. If they ask for upfront payment, they have to clearly explain exactly what you’re being charged for.
They should take you through the whole process one step at a time. They should process all your formalities and loans and sign you up with a good program, depending on your family size, income, as well as line of work. But keep in mind that you’ll need to pay off your student loan, unless there’s a federally-qualifying reason not to do so. Beware of companies that promise to completely wipe out student loans.