Americans are getting under the burden of student debt as colleges and universities are increasing fees every year. The Federal Reserve Bank of New York estimates the nation’s outrageous student debt which is between $902 billion and $1 trillion. There is been significantly increase in the number of students who are applying for student loan.
A woman September Adams was working full time to raise her son. She says, she was feeling over-whelmed due to pressure of loan installments and other financial expenses she had to bear and then a phone call came out of nowhere, offering help.
According to her, the company promise to consolidate her student loans, which sounded too good. At time, she didn’t think anything much. Adams says, I was so excited at the time, thinking that, you know, we were going to consolidate everything and everything is going to be one payment. But it turned out not how I thought it was.
The company charged her $1,300; not to pay off her loans, but to help enroll her in another program she was already enrolled in to consolidate her student debt. The also put her on a federal program to lower her monthly installments. As she didn’t have $1,300 to pay them at the time, so company also financed that amount and charged her another monthly installment with 20 percent interest.
Financial aid expert Thad Spaulding suggest that “It’s all available for free”. Anyone can enroll to these programs without spending a cent. The government has detailed the complete process online at its website “studentaid.ed.gov”. Anyone know about the site, can do it for free in ten minutes.
On the other hand, companies who offer to help you, with a fee, have a different opinion. They say, the process can be hard and many people just don’t know how helpful these programs could be so many people are willing to pay someone to do the dirty paper work for them.
Adam wishes if someone at her university would have helped her or guided her about this site, as this could save her from loss of $1,300 and some extra loan she have to pay in form of interest.