Don’t Trust These Companies With Your Student Debt
NERDWALLET INVESTIGATION
Don’t Trust These Companies With Your Student Debt
Borrowers, beware of student loan scams. This Watch List names companies that charge for fraudulent or questionable debt relief services.
Use Our New Tool to Protect Yourself
To help consumers avoid costly mistakes, our reporters and researchers have mined public records of hundreds of companies profiting from student loans. NerdWallet Student Loan Watch List is the nation’s first of companies whose conduct, legal sanctions or ownership give borrowers reason to be wary. For more on our approach, see Who Gets Listed.
Want to see what others are saying about student loan companies or want to tell other borrowers or NerdWallet public interest reporters about your experience? Go to comments here.
Fraudulent “debt relief” companies are preying on the most vulnerable of the 44 million people with student loans, as federal officials dispute who’s to blame and what to do, a NerdWallet investigation has found.
As federal agencies lag in enforcement of fraudulent student loan relief companies, businesses banned by some states continue operating elsewhere.
Bob Greenberg, a call center manager for a multimillion-dollar student debt relief operation in Florida, struggles with his conscience as the company’s tactics unfold.
Three borrowers who deal with debt relief companies say being scammed hurt more than being short of money.
Certified student loan counselors like Taunya Kennedy are islands of trustworthy advice in a sea of of deception filled with companies that claim to provide assistance — for a steep price.
Here are six steps to take to end contact with such companies and get the student loan help you need.
Watch
NerdWallet partnered with Fusion TV to learn about one woman’s experience with a student “debt relief” company. Selina Leonard shares her story in this clip of Fusion’s “Debt Trap” documentary.
Listen
Hear Leonard share more of her story on NerdWallet’s MoneyFix podcast.
They try to take advantage of desperation.
Janna Champagne, student loan borrower
By the numbers
Frauds Multiply As Student Loan Debt Surpasses Auto and Credit Card Borrowing
Fraudulent debt relief companies capitalize on growing student loan debt in the U.S. The scammers’ targets: struggling borrowers among more than 44 million people shouldering nearly $1.4 trillion in outstanding student loans.
One In Six Student Loan Holders Falls Seriously Behind and Becomes Target
Debt relief companies have an expanding pool of desperate borrowers to choose from. More than 7 million borrowers had fallen seriously behind on payments in 2015. Another 20 million remained current but were failing to reduce their balances.
These steps can ease debt woes
How to spot a student loan scam
How to get federal student loan forgiveness
Survey: Student loan debt relief companies cash in on confusion
A guide to student loan consolidation
Find the best repayment plan for you
Something about this, it just tears at my heart.
U.S. Rep Elijah Cummings, D-Md
Protect Yourself in 60 Seconds
You can avoid nearly all scams with three simple, quick steps.
Step 1
Look at the offer from the company. It if contains any of these five elements, beware. Seek alternatives as outlined in stories higher on this page.
Warning signs:
- You have to pay upfront or monthly fees to get help
- The company promises immediate loan forgiveness
- A salesperson pressures you to sign up
- You’re asked to share sensitive personal information
- The company advertises on social media or shows up in search engine ads
Step 2
Look for the name of the company on our Watch List below. (Warning: Many newer companies do not appear because authorities have not yet taken action against them.)
Step 3
Read comments at the bottom of this page from borrowers describing their experience with companies.
A
Action Administrative Services
Advantage Student Loan Consolidation
American Financial Benefits Center
American Student Loan Consolidators
American Student Loan Forgiveness & Debt Relief
B
Bright Futures Financial Corp.
C
Consumer Protection Counsel, P.A
D
E
Equitable Acceptance Corporation
F
Financial Education Benefits Center
Financial Education Referral Center
Freedom Student and Tax Defense
G
H
Help Assist Me Default Resolution Services
Student Financial Resource Center
Student Loan Assistance Center
Student Loan Assistance Center (Florida)
Student Loan Consultants of America
Student Loan Forgiveness Agency
Student Loan Forgiveness Center
Student Loan Reduction Services
Student Loan Relief of Texas Inc.
Student Loans Processing Corp.
Sunshine Document Preparation Inc.
T
The Center for Student Debt Reform
The Student Loan Relief Department
The Student Loan Resolution Center
U
U.S. Student Loan Services Inc.
US Direct Student Loan Services
Y
Your Student Loan Relief Organization
Sign up to receive Watch List updates and new stories from NerdWallet’s Public Interest Reporting team.
Reporters: Richard Read, Teddy Nykiel and Alex Richards
Editors: Drex Heikes and Alex Richards
Copy editors: Erica Harrington, Carolyn Kimball, Jim McNett and Kenley Young
Researchers: Djamila Salem Fitzgerald, Jeremy Borden, Amanda Waldroupe, Beth Slovic and Nona Yates
