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Misleading Student Loan Mailer to Watch Out For From Student Loan Servicing Center

A consumer just submitted a complaint about Student Loan Servicing Center and included a mailer they received. I wanted to review the mailer for you and show you all the items that raised my concern.

It’s worth discussing these items so you can be more aware of what marketing messages you may receive so you can evaluate them.

If you want to know more about student loan assistance programs that are available, click here.

Student Loan Servicing Center Mailer

1. The mailer refers to new laws discounting federal student loans but fail to state what new law they claim offers these benefits. I am not aware of a new change that this would apply to.

2. Student Loan Servicing Center is the name of the company contacting the consumer and not a federal student loan qualified program. Qualified by whom?

3. Total forgiveness programs are not a new thing.

4. This is a marketing mailer to sell student loan assistance services. There is no time limit on receiving federal student loan benefits.

5. While the mailer says the benefits offered are “new” these programs have been around for a number of years through the Department of Education student loan rehabilitation program.

6. They provide no support or justification of the performance claim stated. There is no reason to not believe that is a fictional number. They also state there is a money back guarantee which would appear to indicate there is an advance fee.

7. The generically named company claims to be an “advocacy group” but the reality is they are most likely a marketing group and the person you would speak with is a salesperson. It would also be questionable if the company responsible for this mailer is truly working in a fiduciary capacity on behalf of the consumer.

8. The wording may confuse a consumer to think the people behind this mailer are somehow sanctioned by the U.S. Department of Education. This appears to be highly misleading.

“Steve

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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.
  • Kino

    Very glad to have googled and found this! I received a letter just like this about such “new” laws, but I see in the example above that the date is 2013, and that was two years ago. I was confused, as the letter came in just after I had finished renewing an IBR with my federal loans directly, so I thought I’d research online before giving them a call. VERY glad I did! Thanks to both this article, and the poster below (Shanta) for sharing the information and the story!

  • Shanta

    I received this letter around Dec. 27th, and I decided to called them today. And let me tell you that this scam had my head spinning and in tears. You supposedly deal with a Student Process Center in which the rep tells you that in my case she is my Financial Consultant. She has All of my information and then she uses a scared tactic explaining to me that the government could garnish my checks. However, I told this rep that I am never delinquent and that I was with FedLoan, who I thought worked directly with the Department of Education. The reps response was that FedLoan was taking advantaged of me and that I could be in some serious debt in the next few years. Now, I am $100,000 in debt so what could be worst than that? And as we are talking she is typing up my application in the background. She asked me for my drivers license, all of my personal information, banking information, and two references. What I didn’t understand is why she didn’t have that information already when she had already known so much about me? But I was going with the flow of the conversation feeling completely blindsided with this phone call, and feeling like I had no choice. I just felt like my back was against the wall and its a very sickening feeling when you can’t reach out and talk to someone about the best possible options for yourself. Nevertheless, when we got towards the end of the conversations she told me how much my repayments would be monthly but she had to get it approved and once she did that’s when things really got interesting and almost forceful. She told me that I had to pay a fee for $700 dollars that I had to pay right away. I could make payments that weren’t idea, or I could make a payment today and pay only $500. I questioned the fee but I also told her that I couldn’t make that payment and that I never had a payment before. She tried to explained to me that this was a one time fee and that the company, Student Assistant Plus will be taking care of me for the remainder of my loan for a fee of $30 a month after the initial fee. She told me that I could even put it on my credit card after I had already told her that, that wasn’t even an option. However, she didn’t care. She was only concerned that I somehow make this payment. So we worked out the dates of three payments every 2 weeks for $233 assuming that I had no choice to pay this. She made sure that I understood this and then I was transferred over to another department that made sure I understood that I was dealing with three different companies. They email me a form for consent and then they email me a consolidation form to take over my account. When I got off the phone with the last person that I had spoken to I was left even more unsure about what just happened. So I am very happy that I did my research and found this website. You have been very helpful to me and my situation. Thank you for a little bit of peace of mind!!!!!

    • http://GetOutOfDebt.org/ Steve Rhode

      Don’t feel bad, just yesterday I talked with someone who said they contacted a student loan assistance company and they were going to have their loans forgiven in 10 years and their payment was only $39 per month.

      There are two problems with this. The first is that her IBR payment was actually $0 per month but the company was charging a $39 monthly fee but they did not explain it clearly to her. The second big problem is the woman was not employed in any public service loan forgiveness qualifying program. Her loans were not going to be forgiven under her current status.

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