Real Scam Stories
Susan paid a document preparation company $699 to consolidate her federal student loans. Susan already had four years of qualifying payments toward loan forgiveness on an income-driven repayment plan, which no longer qualify after the loans consolidated.
Danielle was a victim of a document preparation company. She paid $599 after she was promised that her loans would be forgiven after one year. The company called the student loan servicer and impersonated Danielle, using all of the private information that she had provided the company. The company applied for an income-driven repayment plan on Danielle’s behalf and lied about her family size to get her a lower monthly payment amount.
Chris contracted with a debt relief company and was supposed to pay $180 per month for four months, then $220 per month for the next 10 years. Using information that Chris provided to the debt relief company, the company accessed the federal student loan servicer website, cancelled monthly automatic payments, electronically signed a loan debt forbearance request and lied that the borrower had no income.
Jamie paid $25 per month to a company that told her that after two and a half years of payments, half of her loans would be forgiven. The company electronically signed the income-driven repayment plan application using information that Jamie provided to the document preparation company. However, the application was denied because Jamie was still in-school and not due for payment.
Reid paid $99 per month for six months to a document preparation company. The company changed the address on file with the federal student loan servicer to their own address, instead of Reid’s. They also called the servicer and impersonated Reid, and submitted a forbearance request signed as Reid.
*Names have been changed to protect the borrower’s identities.