Student Loan Finance Scams – I confess I was a victim of student loan scams. My name is Jake and I want to warn you of what to look out for.
I really want to share my knowledge, I did my homework and found out the best ways to beat the scammers. I don’t want you to get done in too. It can so easily happen. Make sure spot the warning signs with these tips.
Did you know that student loans is big business, will companies making millions of dollars per day. This makes the scammers target American Student. In fact thousands of students are getting ripped of by scams. It’s costing millions of dollars.
So What Types Of Scams Are There?
Fraudulent or illegal scams can take on many forms. You might be promised a scholarship, this will typically never arrive. They will encourage you to send an admin fee to process the scholarship, don’t be tricked via this.
It is always a scam. Most people will be flattered they they got a scholarship they were not expecting to they will unfortunately filling their private details and send money off. The scammers have then got you in two ways, one they have your personal private information and then they have your admin fee.
Another form of the scam described above is the Advance-Fee Loan.
They again will get you to send in an Admin fee. Don’t fall for it. See, legitimate might charge an admin fee but they will never require you to pay for it upfront. So you will get caught by paying the upfront fee and the actual loan will never appear.
To get you in they normally offer incentives or a promotion of the loan, they will assure you that the loan is a special low interest rate loan. They will also probably make you act fast, like send in the money in the next ten days and you will get a further discount. Legitimate loans don’t work like this so be on the lookout and don’t get scammed.
If you believe the offer is a scam, report it
Know that reporting this crime is essential. You might be ashamed to admit that you have been conned by such schemes but it’s very important so other people don’t get stung too.
If you don’t make these crimes known then they will just move onto the next victim and the crime will continue, until someone reports it. The first thing you need to do is by filing a complaint with the Federal Trade Commission which can be done online in just ten minutes.
I really do sincerely hope this information gets your mind ticking over and gets you into action. I also hope it provides you with a few tips and some good Student Loans With Bad Credit advice to think about when getting your Student Loan.
To get more advice and information on Student Loans With Bad Credit, or general student loan information, click on http://www.american-studentloan.com
One of the most convenient ways to finance education is through student loans. However, student loans like all other loans have to be eventually paid back. After graduation you might find that the loans have accumulated and are hard to pay back. In such an event, you may consider consolidating your student loans. You can lower your monthly payments as well as save money with student loan consolidation.
Why should you consolidate student loans?
By consolidating student loans, you can combine all your loans together into a single loan. The benefit of student loan consolidation is that you will have only one lender and one payment to deal with. It will also give you the opportunity to lock in a low interest rate, which can save you hundreds of dollars over time.
What would be the cost of consolidating student loans?
When you consolidate your student loans you can bring down your monthly payments considerably, by as much as 60 %. The only drawback is that you may end up paying a larger sum of money over the life of the loan. Before consolidating your student loans, take time to evaluate the interest rate and loan terms. Shop around and compare lenders.
There are several Federal Loans eligible for Student Loan Consolidation. Many federal student loans already have a low interest rate. However, you may be able to achieve a lower payment by consolidating student loans. Below is a list of list of federal loans that typically qualify as student loan consolidation:
Federal Stafford Loans
Federal Direct Loans
Federal Perkins Loans
Federal Supplemental Loans for Students (SLS)
Federally Insured Student Loans (FISL)
National Direct Student Loans (NDSL)
Federal Parent Loans for Undergraduate Students (PLUS)
Loans for Disadvantaged Students (LDS)
Auxiliary Loan to Assist Students (ALAS)
Health Education Assistance Loan (HEAL)
Some college graduates face tough financial challenges when the time comes to start repaying their student debt. Here are some things to keep in mind that can make your life a little easier.
A young man I know recently graduated from college with a bachelors degree. Along with his fresh degree, he has a student debt of over $44,000 dollars with scheduled payments that will exceed $500 per month. To compound his problems, he is working a temporary job, and will be laid off at about the time he needs to begin making payments. If you face a similar situation, it’s important to carefully weigh your options.
What are your options?
Obviously, the best thing to do is to repay your loans in the way you agreed upon. Be proactive before your payments begin. However, what can you do if you absolutely cannot afford the payments that you are facing.
Not paying – going into default
This really isn’t an option. If you can avoid it in any way, do not allow the loan to enter into default. Default will negatively affect your credit for a very long time to come, and will make your life much more difficult.
Bankruptcy is also not viable. Some people have the mistaken idea that if they can’t afford to make their payments, they can simply file for bankruptcy and have their loans discharged. However, in all but the most extreme cases, that is not allowed. For instance, in 2008 over 72,000 borrowers tried to discharge their student loans in bankruptcy – only 29 of them were able to prove “undue hardship”. Even if the person does manage to prove hardship, they will likely only have the amount reduced – not removed.
Consolidation – reducing the amount of your monthly payment
Consolidation loans allow you to combine different types of federal loans to make repayment easier. Even if you just have one loan, you can choose to consolidate it. By doing so, you essentially refinance it, which can provide lower monthly payments and longer repayment term – up to 30 years. However, be aware that a consolidation can significantly increase the overall amount you will pay for your education.
Postponing payments through deferment or forbearance
Although you select which repayment plan you want when you first begin repayment, keep in mind that you can switch plans later if your financial situation changes.
Deferment
During a deferment, your payments and interest are deferred. You can defer your loan payments for certain situations. Military service, part-time college attendance and being unable to find full-time employment are several reasons.
Forbearance
If you are ineligible for deferment, you may be able to get a loan forbearance. During this period, you may not be required to make payments, but interest is typically still being accrued. This can be very costly, and if you do enter into a forbearance arrangement with your lender, you should pay what you can as soon as possible to minimize the amount you pay in interest.
Loan forgiveness
If you are fresh out of college, and just starting to make payments, you are unlikely to be eligible for this program. However, if you plan accordingly and integrate it into your career path, you can potentially reduce your student loans by a substantial amount in the future.
The Public Service Loan Forgiveness Program gives you the opportunity to have the balance of your loans forgiven. To be eligible, you must make 120 on-time monthly payments and be employed full-time in a public service job during the same period in which the payments are made.
Be proactive when it comes to repayment.
Simply being proactive and responsible now will make your life a lot less stressful as you repay your loans.There are many options available to help you. Begin looking for alternative solutions as soon as you think you might have trouble paying. Don’t wait until it’s too late and you are missing payments.
These programs are subject to quite a few exceptions and conditions. So even if you think your ineligible, it’s still worth reviewing to find out for sure. Learn the facts for yourself rather than relying on what you hear other people say.
You can find more information and options for repayment of Federal Student Aid loans here: http://studentaid.ed.gov/PORTALSWebApp/students/english/repaying.jsp