STUDENT LOAN SCAMS

Thousands of students are set to begin their first year at a Florida university or state college, and many will use student loan assistance. Debt relief companies often target new students with the promise of student loan debt relief or reduction. Students who pay these companies frequently don't get their student loans forgiven or reduced. Often, at best, the companies are able to put loans into deferment while the loan's interest keeps growing. At worst, students were defrauded out of thousands of dollars.
Before you pay a debt relief company, watch out for these signs of a scam:

• Never provide personal information, such as Social Security numbers or financial information, on an unsolicited call. If you receive a suspicious call, contact your loan servicer or the U.S. Department of Education to verify the information.
• A U.S. Department of Education seal does not mean a company is legitimate. Scammers typically use official-looking names, seals and logos to convince you that they have special access to certain repayment plans, new federal loan consolidations or loan forgiveness programs. If you have federal loans, go to the U.S. Department of Education directly at StudentAid.ed.gov to find out what options are available to you.
• Be wary of upfront fees. If you pay to reduce or eliminate your student loan debt, you might not get any help or your money back.
• Scammers may promise to dissolve your loans through a loan forgiveness program or by disputing the loans. However, no one can promise total loan forgiveness.
• Some scammers will advise that you stop paying your student loans. Not paying student loans can damage your credit and your loan balances could balloon, and there's no guarantee that a company will be able to get a settlement.
• Some companies may tell you they can lower your monthly payments or interest rate by combining your federal and private student loans. However, consolidating federal and private loans comes with a cost. Doing so eliminates many benefits and protections offered by federal loans.