Boston Student Loan Lawyer

Law Office of Adam S. Minsky

  • Home
  • Services
  • About
  • Publications & Press
  • Testimonials
  • Speaking & Trainings
  • Contact
  • Blog

New Report Describes the Booming Student Loan “Debt Relief” Industry

July 24, 2013 | Adam S. Minsky, Esq. Articles

Share the post "New Report Describes the Booming Student Loan “Debt Relief” Industry"

  • Facebook
  • Twitter

Think student loan lenders and collection agencies are the only ones trying to take advantage of students? Think again.

There is a booming new industry. Dozens of companies have popped up over the past few years, claiming to offer student loan borrowers simplified loan management and reductions in their monthly payments. Sounds great, right? While some of these operations may offer legitimate assistance to borrowers, a new investigatory report issued by the Boston-based National Consumer Law Center (NCLC) describes some of the problems with these companies. The report was issued after a “secret shopper” looked into nearly a dozen of these firms. Here are some key findings:

  • Companies frequently omit or misrepresent key facts about loan programs that can be critical in helping a student loan borrower understand his or her options.
  • Free federal loan programs such as consolidation and Income-Based Repayment (IBR) are sometimes marketed as a company’s own in-house debt solutions. The company then charges for access to those programs.
  • In addition to hefty up-front costs, companies will often charge monthly surcharges or “maintenance fees.” Sometimes, these fees will not be disclosed, or they will be buried in the fine print of dense contracts that the student loan borrower is required to sign.
  • Borrowers may be pressured to give an agent of the company direct access to his or her student loan accounts, or to sign on the borrower’s behalf.
  • The companies will often not disclose names and qualifications of executives, staff, or employees, making it difficult (if not impossible) for borrowers to determine the legitimacy of a particular operation.

While the NCLC report is highly critical of these companies, it also lays some of the blame on the U.S. Department of Education and its contracted loan servicers. As many of you are aware, the federal loan servicing bureaucracy is unhelpful, prone to errors, and incredibly frustrating to navigate, driving many borrowers to seek assistance elsewhere. It’s perfectly understandable that student loan borrowers want to look for assistance with managing their student loans; they just should be careful about where they look.

To read the NCLC report, click here.

Share the post "New Report Describes the Booming Student Loan “Debt Relief” Industry"

  • Facebook
  • Twitter

Articles

About Adam S. Minsky, Esq.

Adam S. Minsky founded the first law office in Massachusetts devoted entirely to assisting student loan borrowers, and he is one of the only attorneys in the country practicing in this area of law. He provides counsel, legal assistance, and direct advocacy for borrowers on a variety of student loan-related matters. He regularly speaks to students, graduates, and advocates about the latest developments in higher education financing.

Books by Adam S. Minsky

The Student Loan Handbook for Law Students and Attorneys

The Student Loan Handbook for Law Students and Attorneys

Student Loan Debt 101

Student Loan Debt 101: The Definitive Guide to Understanding and Managing Your Student Loans

Student Loans for Parents and Cosigners

The Student Loan Guide for Parents and Cosigners

617-936-2788
asminsky@minsky-law.com
By Appointment Only 265 Franklin Street, Suite 1702
Boston, MA 02110

Copyright © 2023 Adam S. Minsky · DISCLAIMER: This website may be considered advertising under Massachusetts Supreme Judicial Court Rules. The content of this website is for informational purposes and should not be considered legal advice. This web page does not establish an attorney-client relationship. Terms of Use

Copyright © 2023 · MinskyLaw on Genesis Framework · WordPress · Log in