NEW YORK (5/12/15)--Suffocating student loan debt is one of the most serious financial problems facing a generation of Americans. Worse still, it makes student loan borrowers a tempting target for unscrupulous companies.
According to consumer advocates, complaints and suits filed against companies offering dubious student-debt relief programs are on the rise (MarketWatch May 5). The companies lure in borrowers by presenting themselves as empowered by the government to help lessen their debt burden but are really after easy money.
Often they push borrowers to sign contracts with hidden fees, and make promises they have no intention of delivering on and couldn’t even if they did, such as offering loan forgiveness. These tactics are similar to the ones used by companies in the wake of the housing crisis that took advantage of homeowners suddenly facing an upside-down mortgage.
If you’re struggling with student loan debt, here are some better options:
For related information, read “Many Colleges Can Be the ‘Right Fit’ for Your Student” and “Students: Easy Ways to Cut Costs” in the Home & Family Finance Resource Center.