Student Loan Scams and Bankruptcy

It is common for students to pay for their education through loans. During the process of attempting to find a loan provider that will lower a student’s monthly loan payments, many students encounter companies offering fraudulent deals. If you have student loan debt, it is critical to be aware of various common refinancing scams. While bankruptcy courts have traditionally not allowed students to discharge student loans through bankruptcy, the landscape has changed significantly over the last few years. If your student loans have led you to pursue bankruptcy, you should not hesitate to speak with an experienced bankruptcy lawyer. Advance Fee Scams Advance fee scams involve companies who claim that they can help you receive the best interest rate and loan terms in exchange for a small fee, which can range from 1% to 5% of your total loan. These offers exist in stark contrast to other types of student loans, which do not require upfront fees. The only type of acceptable fee that comes with student loans is a default fee for federal loans or a disbursement/origination fee associated with private loans. A company that offers to help with your student loan debt should never require an upfront free [...]