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My Student Loan Relief Wants to Charge Me a Monthly Fee. – Danna

“Dear Steve,

I called a similar agency to get help with my student loans. Initially I received a litigation letter in regard to my private student loan. They were threatening to follow through thus garnishing my wages. Upon calling “My student loan relief” they asked for my FAFSA pin, I gave it to them, she accessed my information. She proceeded to explain that the private loan should not be at the forefront of my mind because she can guarantee that they cannot do anything for a year because it is costly to them. She then explained that I should be concerned with paying my federal loans first.

She’s charging me an initial entry fee of $299. She’s forwarding me paperwork and asked that I send in copies of my ID, and social security card. She also told me that the paper work she’s sending me needs to be notarized. I’ll be making them my power of attorney. I’d be making my payment for 9 months to the government and pay the 29.95 fee per month. Is this a SCAM. I’m so confused as what to do. Is the information about the Private loan accurate? I need HELP!


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The Answer

My Student Loan Relief Wants to Charge Me a Monthly Fee.   Danna

Dear Danna,

Thank you for reaching out to me with your question.

If the company is charging you $29.95 a month until your loans are fully repaid, over 20 or 30 years, then that would be a huge red flag for me.

You might want to read Student Loan Assistance Rescue Scams On the Rise – Buyer Beware and the review I did on My Student Loan Relief.

The Department of Education is very clear that you do not want to give your FAFSA number out to anyone.

Consolidating your student loans or getting them out of default is something you can do yourself for free. Did they tell you that?

That being said, if you want to pay someone to do this for you, that’s your choice. If you’d like for me to look over the client agreement they send you, you can upload it to me here.

You should take threats of wage garnishment very seriously and call the private student loan lender and work out a repayment plan. Then consolidate your federal student loans and consider enrolling them on the pay as you ear, income based repayment plan or income contingent repayment plan.

In the meantime here are some helpful links if you want to deal with this yourself.

Student Loan Resources

You can use the following student loan resources to help reorganize, discharge or forgive your student loan payments.

The Overall Guide to Dealing With Student Loan Debt

Get Help For Your Student Loan Problem

Discharge Your Student Loans in Bankruptcy

Getting Sued Over a Student Loan

Student Loan Forgiveness and Discharge Information

Watch Out for Student Loan Assistance Programs

Student Loan Consolidation Information

Specific Federal Student Loan Repayment Program Information

Maybe College Isn’t the Answer

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

My Student Loan Relief Wants to Charge Me a Monthly Fee.   Danna
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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