Ask The Get Out of Debt Experts Student Loan Rescue or Assistance

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

Written by Steve Rhode

“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!


Magnifying Glass - Q&A

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.

READ  My Student Loan Relief - Review. Are They a Scam?

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.

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

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About the author

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.


  • Danna the sales person for “My Student Loan Relief” has no idea what they are talking about. She told you that you should ignore your private loans that could potentially be heading to litigation because they can’t do anything for a year? Excuse me but how the #$&% does she know what a private student loan collector will or will not do? She doesn’t. It is a bunch of bullshit read from some stupid script in order to get you to pay them.

    It is true your federal loans are important but run from this bullshit company that seems to dish out bullshit advice from a bullshit sales person just because they only get paid to deal with federal loans.


    Did I mention the advice was bullshit?

  • As a student loan advisor that helps students consolidate loans for a living, yes you can do it yourself for free. However, it’s very similar to any government application, attention to detail is key to a successful consolidation. A good example is doing your taxes. Yes you can do them yourself and you can do them for free, but most people opt to have a third party company to handle the leg work for them to ensure an accurate and complete process. There are many details that must be taken into consideration and doing a consolidation yourself may give you an acceptable result although it may also leave you missing other opportunities that a person may qualify for. The key to success is be diligent and do your research on the company. There are many good companies out there that help a lot of people maximize their benefits. But just like everything, there are bad apples in every bunch.

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