Kilgore College warns students to be leery of a rash of social media advertisements that appear to offer an option to “remove all student loans” and promising loan forgiveness.
Loan rescue organizations promise assistance to arrange federal student loan forgiveness in exchange for a fee.
It is important to know that companies cannot do anything that a student’s federal student loan servicer cannot do free.
Rescue companies around the country often go by names that imply they are government agencies or nonprofit organizations. KC asks students to think twice before giving out any personal information to these companies.
Borrowers seeking to lower their monthly payments, postpone repayment or apply for loan forgiveness should contact their federal student loan servicers directly.
The name and contact information for a borrower’s loan servicer is available through the National Student Loan Data System at https://nslds.ed.gov.
Also, the U.S. Department of Education’s Federal Aid website, https://studentaid.ed.gov, provides information regarding loan forgiveness, repayment plans and deferment and forbearance.
It is important to remember that loan forgiveness programs found through a search engine can yield paid results for companies not affiliated with federal loan services.
Direct solicitations by email, regular mail, phone calls or text messages for payment in advance or guarantees of loan forgiveness are warning signs that companies might not be legitimate.
Under no circumstances should students give their federal student aid IDs to loan rescue companies.