Warning: Loan Forgiveness Scams
September 21, 2016
Currently, deceptive ads about loan forgiveness are circulating on social media. The companies featured in the ads fraudulently use the LIM College logo or photos to suggest that the College sanctions their services.
These are scams that are only seeking to profit from student borrowers by often making false promises and using other tricks to convince borrowers to pay for student loan services that either don’t exist or are available for free.
Some of the companies that have targeted LIM students and alumni are:
- The Loan Monster
- Student Doc and Prep (StudentDocNPrep)
- Consumer Budget Report
- Consumer Money Advocate
These companies constantly change their names and tactics to separate borrowers from their money — their services can cost hundreds or thousands of dollars in fees and they may actually drive borrowers further into debt.
Those who have had contact with any of these debt relief companies should contact the New York State Attorney General’s Office at 1-800-771-7755 (within NY) or file a complaint at www.ag.ny.gov/complaint-forms, as they are currently investigating several of these companies. The U.S. Consumer Financial Protection Bureau is also taking action against many of these companies and can be reached at 1-855-411-2372 or www.consumerfinance.gov.
LIM students or alumni who have already entered into a financial commitment with one of these companies and would like LIM’s assistance in contacting the New York Attorney General’s Office, the CFPB, and/or working to discontinue the commitment, may contact Christopher E. Barto, LIM College’s Vice President for Student Finance & Chief Compliance Officer at email@example.com or 212-310-0635.
Borrowers should make it a point to know who their official federal loan servicer is — either FedLoan Servicing, Great Lakes, Navient, or Nelnet. Borrowers can look up their federal loan history and loan servicer information at www.nslds.ed.gov. LIM students and alumni can also contact the LIM Office of Student Financial for assistance identifying their loan servicer. Loan servicers can discuss all repayment options.
Borrowers can review all of the federal loan repayment plans, including the criteria for Public Service Loan Forgiveness, at https://studentaid.ed.gov/sa/repay-loans.
Additionally, LIM College has partnered with SALT from American Student Assistance (ASA) to provide free loan counseling services and an online loan repayment resource for students and recent alumni. ASA may be reached at 1-877-523-9473 or email LoanHelp@saltmoney.org to review loan repayment options. Loan repayment information is also available at www.saltmoney.org.
LIM College students and alumni may always contact the LIM College Office of Student Financial Services for further information, support, and guidance at 212-752-1530 Ext. 389 or firstname.lastname@example.org