Was sent a letter in the mail that said “Federal Student Loan Consolidation Notice”. I called the number (855)296-8133 on 03/16/15.
I spoke with a girl named “Kay Reang” of Student Processing Center. She mentioned that I would qualify for the Obama Student Loan Forgiveness Plan, and for my my full name and address. She also asked for my social security number. I gave pause and asked why it was necessary and she stated that it was to confirm my identity and for my forbearance request form. She then asked for my pin number to access my student loans. (I did not know it and she “guided” me through a process to retrieve it. I was clearly not aware that she must have been accessing my studentloans.gov account in a roundabout way.)
Upon reviewing whatever information she had at her disposal, she stated the exact amounts of my remaining student loans with their respective interest rates. She then asked for my Adjusted Gross Income in 2014, my marital status, if I claimed any dependents, and what type of consolidation I was interested in (faster repayment terms or reduction in monthly payments) and I replied the latter. She then proclaimed that Student Assist Plus could reduce my monthly payment to $220.76/month at 5.52% through the Department of Education’s Federal Programs via an ICR (Income Contingent Repayment) over 126 months.
I was so excited that my monthly payments were reduced by almost 40% so I said I was ready to consolidate. Kay mentioned that there was a “loan closing cost” of $699 that was broken up into a few payments, or that if I was willing to pay it all at once it would be reduced to $599. I chose the single payment option and charged it to my credit card.
She then transferred me to “Omar Salazar” of Student Processing Center, who asked me to agree by saying “YES” to numerous certain statements that he verbally read aloud to me. (basically stating that I agree with what Kay and Omar mentioned throughout the whole phone conversation. Unfortunately, I said yes to everything.
Omar then said he would email me a forebearance document for me to hand sign and email back along with proof of income (pages 1 and 2 of my 1040 form). I sent these documents to them on 3/16/2015 . I also went to my bank on 03/16/2015 with the forebearance form to tell them to stop payment to my original loan servicer, Aspire Resources. Student Processing Center charged my credit card on 3/17/2015.
On Wed, 04/15/2015, I decided to activate my supposed “new” account with “Trans2pay LLC”. I received a letter from them a few weeks ago welcoming me with instructions on how to access my account. I logged on to their homepage, and immediately I had a gut feeling that I was scammed–their website was out of date (2012 watermark). I proceeded to try to email and call the contact info given on the site, and both are dummy accounts.
I then decided to google all the companies I had contact with and company information that they gave me: StudentProcessingCenter.com, StudentAssistPlus.com, trans2pay.com. All of the websites appear EXTREMELY fraudulent. I then looked up student loan scams and my experience matched 100% with several examples that were mentioned on sites.
I am currently in the process of working my original loan provided, Aspire Resources, to stop my forbearance request and reactivate my normal monthly scheduled payments.
I also called my bank and explained to them that the $599 payment was a fraudulent charge from a well-constructed scam and that I am strongly disputing it. They are currently investigating this bogus transaction.
Consumer Action Taken:
I have tried calling the parties from Student Processing Center to cancel their “alleged” services, but have received zero responses.
Date This Problem Happened: March 16, 2015
State You Live in: California
Race/Ethnicity: Alaska Native
Age Range: 21-35
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Total Amount of Fee Paid: $599
Company Name: Student Processing Center
Company Telephone Number: 800-311-8569
Website of Company: studentprocessingcenter.com
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