There are many companies out there that claim to provide student loan consolidation services, but the trick comes in selecting the right one. As they say, when the deal is too good, think twice. Consult Molly Day to help you clear your student loan. Just like any form of debt, don’t expect you student loan to just disappear.
There are processes that must be taken to offer a flexible and comfortable method of repayment. Any company that claims that thy will write-off your loan is obviously a scam because that is not how it works when it comes to settling student loans.
Signs of scams in student loan consolidation
Clearing a student loans through bankruptcy
Student loans that are special kind of loans and this means that it is impossible to clear such a loan through bankruptcy. Any company that claims that they will clear your loan through bankruptcy is a scam.
For a loan to be cleared on grounds of bankruptcy, a lot needs to be kept in mind; there is a lot of evidence that needs to be accumulated, lawyers, judges and witnesses. This is something that most companies cannot offer, and this means that a company that claims this offer is just giving false hope to you.
Instant student loan forgiveness
Student loan forgiveness is a process. You just do not wake-up and find that all your loans are non-existent. It is true that student loan forgiveness is an option for many people but it must take the full natural process. Any companies that claims that they will instantly clear your loan through student loan forgiveness is obviously not telling the truth.
For any person to get student loan forgiveness, they must first qualify through a strict policy. First it is important to show discipline and commitment of payment for at least 12 months and other considerations.
Too low repayment fees
The main aim of looking for a student loan consolidation company is to look for a low repayment option. However it is important to watch out for companies that claim to offer very low repayment fees. The repayment fees should be standard across the companies, and a company that promises very low fees is just offering a bait to clients who are likely to fall for the trap.
It is important to also watch out for companies that ask for a monthly maintenance fee to help you consolidate your loan. The legit companies only ask for a one-off fee and do not keep asking for an extra amount each month.