4 Methods To Spot Education Loan Debt Settlement Scams
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Significantly more than 42 million Americans owe up installment loan AZ to $1.2 trillion in education loan financial obligation, and also at minimum 7 million have actually dropped behind on the payments or defaulted on the obligations completely.
A cottage industry of student loan debt relief companies has sprung up promising to help desperate borrowers — in many cases charging for services that are provided for free by the Department of Education and its approved loan servicers to take advantage of the situation.
To make payments that are monthly workable, the Department of Education provides lots of income-driven payment plans that tie loan re payments to income.
Some loans — Perkins Loans, and older Federal Family Education Loans (FFEL), for example — may prefer to be consolidated so that you can be eligible for a a repayment plan that is income-driven.
Consolidating federal government student education loans is free. It can lower your monthly payments by stretching them out to as long as 20 or 25 years although it won’t reduce your interest rate.
These student loan debt settlement organizations should be confused with n’t personal loan providers, who are able to assist borrowers with good credit refinance their federal figuratively speaking at lower interest levels. Although refinancing is not for everyone, it is well worth looking at, specially if you’ve got PLUS loans that carry higher rates of interest (see our step by step guide on how to refinance student education loans).Continue reading