Federal Student Loan Alliance ratings, reviews and complaints - Scam

Complaints and Resolutions

Complaint Experience

N/A

Complaint Resolution Index (CRI)

Complaint Resolution Index (CRI) Explained The Complaint Resolution Index (CRI) is an indicator on how responsive a company is in addressing and resolving customer complaints brought to their attention by BCA. If they are considering doing business with the company, consumers can use this indicator to forecast the likelihood of having their issues addressed if a problem arises. CRI measures the company's customer satisfaction abilities through BCA’s complaint mediation process.

A variety of factors are considered when calculating CRI. This includes how quickly a company responds to complaints, the number of complaints against a company, whether the company addressed complaint allegations, and the outcome of the complaints. CRI is just a subset of the overall rating for the company. Consumers are encouraged to take into consideration the company's CRI, their overall BCA letter rating and other relevant information about the company so they can make a well-informed purchasing decision.

BCA's Summary and Analysis:

Complaints processed claim the company charges an initial fee and monthly installment to process student loan consolidation for consumers with Federal student loans. Several consumers claim the company never advised them they would be charged a monthly fee in addition to the initial start-up fee they already paid. Once the fee is paid and the monthly installments begin consumers allege that no service was done in return. Further consumers allege the company will not return phone calls or emails. Several consumers claim their loans went into default because no paperwork was filed on their behalf.

Our complaint services are free and our team of expert mediators will assist in resolving complaints with businesses.

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Complaint Closing Statistics

0 complaints against Federal Student Loan Alliance closed in last 3 years.

Complaints	Type of response
0	Making a full refund, as the consumer requested
0	Making a partial refund
0	Agreed to make an adjustment
0	Refusing to make an adjustment
0	Refuse to adjust, relying on terms of agreement
0	Unanswered

Other Information

Company Info

Federal Student Loan Alliance works closely with the Department of Education to help you eliminate your Federal Loans or assists you in reducing your monthly payments for those who qualify.

Primary Contact:	Jeff Leitman (President/Founder)
Business Started:	5/9/2012
Social:

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Licensing

We know of no licensing or registration requirement for companies engaged in this company's stated type of business.

Government Actions

BCA has no information regarding government actions at this time.

Comments and Analysis

ALERT: The Attorney General of the State of Illinois has filed lawsuits against companies targeting people struggling to repay their student loan debt. Federal Student Loan Alliance is one of the five companies mentioned in the lawsuit.

Federal Student Loan Alliance claims to work closely with the Department of Education to help you eliminate your Federal Loans or assist you in reducing your monthly payments to those who qualify.

Business Consumer Alliance warns consumers of some of the telltale signs that you are dealing with a student loan scam.

The Student Loan Scam

This is the scam with the most victims because many graduates have several student loans and it sounds appealing to have them consolidated into one single loan and payment. The scam involves a company offering to consolidate your student loans for a fee. In exchange for paying the fee the company will consolidate your loans. This is a scam because Federal Student Loans can only be consolidated through the Federal Student Loan Consolidation Program. Be aware that you can do this yourself. The scam is you are paying someone a fee for something you can do for free. Secondly you are at further risk of the scam company moving you into a private student loan that is worse for you.

Advanced Fee Scam

This scam involves a company offering to lower the interest rate on your student loan in exchange for a fee up front. They will typically ask for the fee in exchange for them negotiating on your behalf with your student loan servicer. This is a scam because real lenders don't charge any fees up front. Instead legitimate lenders will take a fee at closing of the loan typically from the loan amount so you actually pay nothing out of pocket. If you are contacted by a company asking for a fee up front avoid them - it is a scam.

Student Loan Elimination Scam

The student loan elimination scam involves scam companies convincing students that they can eliminate your student loan debt.The company will ask for money up front to help negotiate the settlement of your student loans. Debt relief companies do not have the ability to negotiate with your creditors for a deal under these federal student loan programs. There are strict rules about canceling student loans or having them forgiven. If you do qualify for loan forgiveness or cancellation you won't have to pay a fee to make it happen.

Tips For Avoiding Student Loan Scams

Avoid companies that require payment before they actually do anything especially if they try to get your credit card number or bank account information. Free assistance is available through your student loan servicer.
Avoid companies that make promises of immediate loan forgiveness or debt cancellation. A debt relief company does not have the ability to negotiate with your creditors for loan fogiveness or debt cancellation under these federal student loan programs.
Avoid companies that demand you sign a third party authorization or a power of attorney. These are written agreements giving them legal permission to talk directly to your student loan servicer and make decisions on your behalf. In some cases they may even step in and ask you to pay them directly promising to pay your servicer each month when your bill comes due.
Avoid companies that request your Federal Student Aid Pin. Your Pin issued by the U.S. Department of Education is equivalent of your signature on any documents related to your student loan. If you give that number away you are giving a company the power to perform actions on your student loan on your behalf.
Be cautious of companies that use deceptive names logos or advertising. Some companies will use names or material to fool you into thinking their program is part of the Federal Government's student loan program.
Don't give out personal information to someone you do not know. If the deal sounds too good to be true then it probably is.
It's crucial to research any company you are considering regarding your student loans. Check to see what other consumers are saying about the company online. Obtain a reliability report from BCA to check out the company's reputation or use our Ask the Experts forum to inquire on a offer or business. Report any scams to the BCA Scam Watch Team or file a complaint.

Other Considerations

Our files show disconnected phone numbers, returned mail or both. The company appears to be out of business. We cannot trace addresses of companies or principals. General information is available upon request which may assist you.

It's crucial to research any company you are considering regarding your student loans. Check to see what other consumers are saying about the company online. Obtain a Reputation Report from BCA to check out the company's reputation or use our Ask the Experts forum to inquire on a offer or business. Report any scams to the BCA Scam Watch Team or file a complaint.