Student Loan Debt Settlement – Is it Real?

by DeLadurantey Law Office, LLC on August 5, 2014

Success_Failure_signs_200pxIf you are one of the recent college graduates who are facing thousands of dollars in student loan debt, you may be tempted to contact a debt settlement company. However, you should proceed with caution! The debt settlement industry is moving from handling defaulted mortgages to helping student loan borrowers. Along with the legitimate companies, there are many scammers looking to take your money in exchange for nothing.

Offers that your “entire student loan can be forgiven” if you pay a hefty upfront fee for their debt relief services are often scams. Some even claim to be associated with federal relief programs or a government agency. There are numerous con artists out there who will take your money, promise to negotiate on your behalf, and then you never hear from them again. Another tactic scammers’ use is to instruct you to make your mortgage payments directly to them instead of to your lender, promising this will persuade the lender into settling for less with you. Instead, the alleged debt relief company rarely makes good on their promises.

The Federal Trade Commission reports that it has received hundreds of thousands of complaints about debt settlement and collection companies. Abusive tactics and fraudulent credit-related services have been the basis for numerous lawsuits. Sadly, these numbers are expected to increase as student loan borrowers get increasingly more desperate.

It is important to note that many fraudulent debt relief companies target groups who are most likely to struggle in hard economic times. If you see advertisements for participation in certain student loan debt forgiveness programs, be sure to research the program to ensure it actually exists. If you want to obtain debt relief assistance you can trust, contact the legal team at DeLadurantey Law Offices, LLC.

For your student loan, bankruptcy, foreclosure, and debtor’s rights matters, contact DeLadurantey Law Office, LLC at (414) 377-0518. We serve the counties of Milwaukee, Waukesha, Kenosha, and Racine, including such areas as Milwaukee, Merton, Delafield City, Waukesha City, and Kenosha. Visit our web site and like us on Facebook.



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