Student debt relief companies continue to be an issue troubling consumers. Here at the Student Loan Sherpa, we’ve shared tips from the Consumer Financial Protection Bureau to avoid these scams, and we have also seen people who fell victim to a debt management company.
In tracking activity in the student loan world, one of the tools we use is a google alert on the subject of student loans. In the past week alone, we have seen several postings advertise jobs with companies that would be of some high concern.
In one ad, the company is described as specializing in getting people signed up for Income Driven Plans. This is a classic example of a service that consumers should never pay for. This should always be done with your student loan servicer. Paying one of these companies only serves to complicate the process and increase the possibility of errors. It is money very poorly spent. The classified ad is for a student loan counselor, but the job is posted as a sales job, and they also refer to the position as a sales representative.
Another ad for yet another company was looking for student loan advisors. The position called for assisting clients with their federal student loans. Yet again, this is a service that is charging money for something that is already free. One of the more concerning parts of this ad was that the required experience had nothing to do with student loans. Instead, they wanted experienced salespeople.
A third ad read like it was posted by this guy. They were specifically targeting people to close on student loan deals.
Why is this a concern?
For years these relief companies have come and gone, taking the hard earned money of people struggling with student debt.
The type of people they actively recruit says a lot about who they are and what they do. Obviously, there is nothing wrong with being in sales. However, when it comes to “student loan advisors” or “loan counselors” most consumers assume some sort of training and experience in student loans… not someone who is first and foremost a salesperson.
If you find yourself chatting with someone about your student loans and you feel like you are in a high pressure situation, it is a good indication that something is wrong. Follow the advice of the consumer protection bureau and take steps to make sure you don’t mistakenly waste your money.