Consumer complaints on consolidating student loans

Posted by / 03-Oct-2016 09:51

Consumer complaints on consolidating student loans

Carefully review complaint details and also customer reviews people have submitted through BBB and on other websites.• Make sure you understand the offer and be wary of verbal promises. Ask the company to send you their offer in writing.

From there, contact your loan servicing company, your school’s financial aid office, the Department of Education, or the Louisiana Office of Higher Education to make sure the offer is legitimate.• Ask what service the company is providing.

For several years, federal student loan borrowers have had the Department of Education’s Federal Student Aid Ombudsman to help bring their concerns to financial institutions.

But for millions of students and their families, federal student loans don’t cover the full cost of college and they need private student loans to make ends meet.

With existing student loan debt surging to well over a trillion dollars, many former students are looking for help managing their debt.

One way people do that is by consolidating their existing loans into a Direct Consolidation Loan, which results in a single monthly payment instead of multiple payments to multiple service providers.

While we certainly can’t make your debt disappear, we can help bring your concern to your financial institution’s attention.

Today, we are open for business and ready to hear from you.

Though there are definite advantages to this approach, it may not be for everyone.

Better Business Bureau Serving Northeast and Central Louisiana and the Ark-La-Tex (BBB) reminds consumers that there are no application fees for those consolidating federal student loans through the US Department of Education.

According to the US Department of Education, it is important that people seeking to consolidate their loans continue to make payments, if required, to the holders or service provider of the loans they want to consolidate until their consolidation service provider informs them that the underlying loans have been paid off.

Once loans are combined into a Direct Consolidation Loan, they cannot be removed.

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“What we’re seeing more of are situations where people are led to believe they need assistance consolidating their student loans,” said Andy Fisher, President and CEO of BBB.