Under the FTC Settlement, SLAC is banned from providing debt relief services while being allowed to continue helping existing consumers complete forms and submit documents to ED as part of the yearly recertification process, but only for those consumers who expressly choose to have the defendants provide this assistance. Consumers who choose not to accept SLAC's help should recertify directly with ED or through their servicer.
Student loan debt can be overwhelming. At times the cost of living, unexpected expenses, and other factors can make it difficult to pay down the debt accumulated when pursuing higher education. While the Government has provided various programs to deal with student loan debt, understanding the forms and obtaining assistance evaluating and applying for relief may not be an easy process.
Companies that advertise other debt relief services also target individuals who have student loan debt. Unfortunately, not all companies that offer student loan debt relief services are out to help those in need. Instead, they over promise their abilities and underperform, or fail to provide any services after they collect their fees. Similar to other debt relief promoters, the industry is full of misleading tactics, deceptive advertising, and outright false information in regards to student loan debt relief. These companies may also be in violation of certain state and federal laws that pertain to debt relief companies.
Many of these companies fail to inform consumers that most of the services and programs they offer can be obtained for free through the government. In addition, other common problems with student debt relief services are:
- Misrepresenting government programs as their own
- Charging large fees or failing to disclose exactly what the fees are for
- Advertising a broad scope of services when they only offer loan consolidation services
- Discouraging individuals from handling their own cases
- Falsely claiming government affiliation
- Providing inaccurate or misleading information
- Violations of state and/or federal consumer protection laws
- Requiring long term expensive contracts
Remember you do not have to pay someone to help with your student loan. Debt relief companies do not have the ability to negotiate with your creditors to obtain any special deal under federal student loan programs. The payment levels under federal income driven repayment plans are set by federal law.
Before paying for the services of a student loan debt relief service, contact the Department of Education, or visit their website, for information on repayment plans, loan consolidation, deferment and forbearance, forgiveness, cancellation, and discharge, default and other assistance for repaying loans. You may also wish to speak with your loan servicer for options and plans that may be available to you to repay your debt.