Advertiser Disclosure

Borrower Beware: National Student Loans

You never have to pay for student loan help when plenty of free options exist.
Loans, Student Loans

National Student Loans is one of more than 130 so-called “debt relief” businesses that we’ve placed on the NerdWallet Student Loan Watch List for illegal or questionable dealings.

You never have to pay this company or any other for student loan help. You can get legitimate student loan help for free through the Department of Education or your student loan servicer.

Why we flagged this business

California filed a $6,500 state tax lien against National Student Loans in 2017, state business records show. The lien was released the following year, the records show. At the time of the original Watch List posting in 2017, the Better Business Bureau had given the company an “F” rating. The BBB has since removed any rating, citing insufficient information. The BBB said it attempted to contact the business about allegations made in consumer complaints but received no response from the company.

What about other ‘debt relief’ companies?

The Federal Trade Commission and the Consumer Financial Protection Bureau have been cracking down on “debt relief” companies that rip off student-loan holders, but the agencies struggle to bring action against every business. Such companies often charge borrowers to fill out free government applications, or pocket money paid to service loans. These scams can push borrowers into default on their student debt and leave their credit ruined.

NerdWallet started its Student Loan Watch List in 2017 to flag the student-loan businesses hit by enforcement actions, court judgments or liens, or bad ratings from the Better Business Bureau.

Sources: Better Business Bureau; California state business records


Sign up for our email alerts to help you protect your wallet. Join the conversation and share your stories with NerdWallet’s investigative team on Facebook.