Student Loan Organization - Podcast Ad?
July 6, 2017 11:14 AM Subscribe
One of my friend's daughter is having trouble navigating her student loans. I believe she's currently deferred but wants to start making payments on a limited income. On some of the podcasts I listen to I remember hearing an ad for an organization that basically offers just this kind of assistance. Does anyone know who they are?
And more importantly, are they legit? Doing any kind of search for "student loan help" just generates hundreds of results for what I can only assume are predatory organizations and refinancers looking to take advantage of desperate people.
Are there any good organizations out there that she can call and talk to for free?
Thanks!
And more importantly, are they legit? Doing any kind of search for "student loan help" just generates hundreds of results for what I can only assume are predatory organizations and refinancers looking to take advantage of desperate people.
Are there any good organizations out there that she can call and talk to for free?
Thanks!
Income-based repayment is definitely a real thing--there's a good overview here. Also, note this:
Charging to process income-driven repayment applications is one of the most common ways student debt relief companies prey on borrowers. It’s free to sign up for income-driven repayment on your own on studentloans.gov, and the application isn’t as complicated as it may seem.posted by Pater Aletheias at 11:24 AM on July 6, 2017 [8 favorites]
The ads on podcasts that I've been hearing (and that mesh with your description) are for SoFi - No idea if they're a good company or in her best interests, though.
posted by Mchelly at 11:47 AM on July 6, 2017
posted by Mchelly at 11:47 AM on July 6, 2017
Best answer: I strongly advise not going with a company that claims to be able to help. For most loans, she can get an income-based repayment plan through the US government. She should go to that website and talk to someone. I absolutely would not trust that a company I heard an ad for was legit.
I had my loans consolidated through a government program. At one point, my income was so low that my monthly payment was zero.
posted by FencingGal at 12:21 PM on July 6, 2017 [3 favorites]
I had my loans consolidated through a government program. At one point, my income was so low that my monthly payment was zero.
posted by FencingGal at 12:21 PM on July 6, 2017 [3 favorites]
Best answer: Pater Aletheias and FencingGal are correct - the borrower (your friend's daughter) should go to studentloans.gov and start the process for IDR (income driven repayment) herself. It's a free service, but student debt relief companies court students/borrowers who don't want to deal with their loans. It's a good idea for your friend's daughter to spend a little time to read about and understand the various types of loans she has and any loan cancellation benefits (yes, there are such things) they may offer. It's not the most exciting subject, but it'll be worth it in the end.
Your friend's daughter might want to make a call to the studentloans.gov loan support center (1-800-557-7394) to ask some questions. It can save her thousands of dollars and negative credit report history if she understands her loans.
posted by ATX Peanut at 12:29 PM on July 6, 2017 [1 favorite]
Your friend's daughter might want to make a call to the studentloans.gov loan support center (1-800-557-7394) to ask some questions. It can save her thousands of dollars and negative credit report history if she understands her loans.
posted by ATX Peanut at 12:29 PM on July 6, 2017 [1 favorite]
Best answer: NO NO NO NO NO DO NOT MAKE ANY CONTACT WITH THESE PEOPLE THEY ARE ALL SCAMMERS.
*deep breath* Sorry. What is said above is correct: your friend's daughter's quest for an affordable repayment plan needs to start at studentloans.gov. There is no reason for her to pay a penny to anyone to get on an income-driven repayment plan that she is eligible for. The process is not optimal, but it's much simpler than it used to be, and usually it can be done online through a series of relatively simple steps.
Companies like SoFi refinance student loans, which works for some people, although it carries with it its own set of problems, but anyone besides the government offering any kind of student loan repayment pegged to income is running a scam on you. Frankly, I would stop listening to a podcast that took such ads. They are that bad, that blatantly so, that no vaguely legitimate entity of any kind should be associating with them in any way.
Also, your friend's daughter should sort out what her precise repayment situation is, since people often confuse the technical terms involved. If her loans are all subsidized and she's on an actual deferment, she may not even be accruing interest and it may not be in her best financial interests to start repayment. On the other hand, if she is on some kind of forbearance, she wants to get out of that status as soon as she can, as interest is just piling up. And there are situations in between. Just wanted to draw attention to the importance of that factor in making a decision about how to proceed.
posted by praemunire at 12:57 PM on July 6, 2017 [3 favorites]
*deep breath* Sorry. What is said above is correct: your friend's daughter's quest for an affordable repayment plan needs to start at studentloans.gov. There is no reason for her to pay a penny to anyone to get on an income-driven repayment plan that she is eligible for. The process is not optimal, but it's much simpler than it used to be, and usually it can be done online through a series of relatively simple steps.
Companies like SoFi refinance student loans, which works for some people, although it carries with it its own set of problems, but anyone besides the government offering any kind of student loan repayment pegged to income is running a scam on you. Frankly, I would stop listening to a podcast that took such ads. They are that bad, that blatantly so, that no vaguely legitimate entity of any kind should be associating with them in any way.
Also, your friend's daughter should sort out what her precise repayment situation is, since people often confuse the technical terms involved. If her loans are all subsidized and she's on an actual deferment, she may not even be accruing interest and it may not be in her best financial interests to start repayment. On the other hand, if she is on some kind of forbearance, she wants to get out of that status as soon as she can, as interest is just piling up. And there are situations in between. Just wanted to draw attention to the importance of that factor in making a decision about how to proceed.
posted by praemunire at 12:57 PM on July 6, 2017 [3 favorites]
Best answer: Have her call the organization that is currently servicing her loans. They can walk her through literally every question and option she has for her current loans. They have trained, knowledgeable staff that are literally paid to do nothing else except help people understand and manage their loans. Seriously, this was what I did when I graduated and I haven't had to do anything else.
posted by Young Kullervo at 6:16 PM on July 6, 2017
posted by Young Kullervo at 6:16 PM on July 6, 2017
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