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Can You Please Review My College Loan Services Agreement for Student Loan Help? – Lisa

“Dear Steve,

I have two daughter who just graduated college. Between them, my husband and myself, we have 9 federal loans totaling almost 250K. At this time none of us can afford to pay the minimum loan monthly payments.

I recently contacted a college loan consolidation company. It’s a private company that charges for consolidating and reducing the monthly payments considerable. They charge per borrower because loans can only be consolidated by borrower not all into one lump sum.

I was told we are eligible for income based consolidation which would not only make our payment more affordable but would also be eligible for loan forgiveness after 25 years of payment if it takes that long. I realize that our financial situation would be reviewed annually.

My question is what do you think about these educational loan consolidation services? Is there something we should look for or be wary of when signing with them? Is there one company that you can recommend? Are there any services out there that do this not for profit? Are they as good as the companies that charge a fee?

I just want to make sure that I am making the right decision before spending more money.
I have attached a copy of the agreement of the company that I am working with now.

Thank you,

Lisa K”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Dear Lisa,

Thank you so much for reaching out to me for help. And a triple thanks for sending me the copy of the agreement from College Loan Services.

Let me review what that agreement says first to get a better idea of what they are selling you.

Keep in mind I am not a lawyer and my observations come from just reading the plain language of the agreement.

College Loan Services Agreement

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

When completed, page one gives up a lot of sensitive information that could be used for identity theft. Just make sure you are fully aware of who you are dealing with before providing such information.

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

Page two has more of the same concerns. But then there is the even bigger red flag that they ask for your pin code which the Department of Education advise that you NEVER give out to third parties.

Your PIN serves as your electronic signature and provides access to your personal records, so you should never give your PIN to anyone, including commercial services that offer to help you complete your FAFSA. Be sure to keep your PIN in a safe place. – Source

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

Page three says information was obtained from NSLDS regarding your loans. NSLDS is the National Student Loan Data System and is accessible to you for free. Visit nslds.ed.gov. So far the pages just show me information is being accessed that you already have free access to.

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

Page four is a limited power of attorney for them to act as your official representative.

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

Finally in page five we get to some meat and bones. While the agreement mentions fees, it does not say what the fees will be.

What it does say is that any fees you pay will be essentially non-refundable and fully earned when you sign the agreement and before they provide any service.

At the bottom you are waiving your rights to suing them if they do not deliver what is promised. You appear to be completely signing away your rights if the service does not live up to expectations. Without waiving your rights CLS will not enter into the agreement.

So how confident are they then they can really deliver what is promised?

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

The final page is for your credit card information so they can take their fee. The fee is still not defined.

College Loan Services Information

College Loan Services was only incorporated a little over a month ago. I wonder how much experience they really have with these services?

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

They claim to be located at:

16192 Coastal Highway
Lewes, DE 19958

That actually is the address of their registered agent and doubtfully where the business actually performs services.

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa

The company does not provide a web address and I could not locate a website for College Loan Services in Lewes, Delaware.

At this point I’d have to consider the company is intentionally trying to hide who they really are.

What’s the Point?

When I run into these student loan assistance programs for government backed loans I’m always left with the same impression, what’s the point?

All of this help is available for free straight from the Department of Education. There is nothing this company is going to do for you that you cannot do for yourself.

I’m not even sure that a 25 year repayment program is in your best interest at all?

Please take a few minutes and read my free guide The Ultimate Guide to Dealing With Student Loans You Can’t Afford and review all of your options so you don’t make a long-term mistake that is not in your best interest.

And while I’m assigning homework, please read Student Loan Assistance Rescue Scams On the Rise – Buyer Beware.

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

Big Hug!

Can You Please Review My College Loan Services Agreement for Student Loan Help?   Lisa
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If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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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.
  • Jim

    I understand that these programs can be done on your own…But did the free government programs contact you or market to you to inform you of these programs? The people who did inform you I feel they do deserve a fee IF, they’ve earned it.

    I am an entrepreneur, I was going to open up a college loan assistance company but didnt because I knew I would have to deal with people like Steve “get out of debt guy” Rhode and probably in the future gov’t regulators, because instead of informing the public of these free programs they would rather scrutinize business owners for informing the public of the availability of these programs.

    I also understand this Delaware company looks like they have not done the proper steps to show the public that they are actually looking out for the best interest of their future clients as they haven’t become transparent enough…I get that, but for Steve to immediately discount this as “What’s the point?” is irresponsible and he knows it. He wont help you unless somehow he makes a little money on it either. Him telling you to “click here for my free guide” will get him paid in someway, more clicks equals more advertisers for him and thats ok also.

    So lets agree that at least this Delaware company did you a service by simply informing you of the availability…and for that I feel they at least deserve a thank you. I am confident that get out of debt guy wont agree though.

    Best wishes Lisa K and congrats on learning about these programs available to you. They

  • nanahayhay

    Wow, you are performing a valuable service. The name of this company showed up on my gmail. I was curious because my son has loans he will have to start paying back soon if he doesn’t return to school. I decided to do a search on this company and I found your website. It’s amazing the info this company wants. They could easily steal someones identity. Scary!

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