Government Keeps Eye on Student Loan Relief Industry
Loan consolidation is rapidly becoming a top choice for university graduates who are looking for more affordable ways to repay their student loan. With overwhelming amount of student loan, students and graduates are scouring for much needed help. Student loan relief companies, such as Debt.org, offer these debtors some help.Because of the gaining popularity of the student loan relief industry, the Federal Trade Commission (FTC) has presented three key areas that the FTC will closely watch on these debt servicing companies. These key areas are false claims, telemarketing, and credit repair services. Each key area is of equal importance as the other two. The FTC is keeping eye on the student loan relief industry so debtors do not end up at a disadvantage.
In order to attract more debtors to their loan relief services, debt servicing companies may subscribe to the following false claims:• affiliation with government offices such as the U.S. Department of Education• misleading statements regarding loan offers• discounted or free sign-up feesSuch false claims lead potential loan relief applicants to award unwarranted trust to these debt servicing companies.
Some loan relief companies operate in multiple states. As such, the FTC wants to make sure that such companies must be completely transparent with all the services they offer over the wires. Any potential customer must be notified that the completion of the loan consolidation is going to be done by the Department of Education and that the debt services are only limited to helping the student prepare the documentation for the loan consolidation.
Credit Repair Services
Credit repair services are covered by the Credit Repair Organizations Act. This act protects potential customers of credit repair services so that they are notified of all information they need before deciding on availing the credit repair services of a company. While the act protects, loan relief service seekers must make sure that they take necessary precautions to make sure that the company delivers all its promises.FTC recognizes that there is a need for private loan relief servicing companies to be in operation. FTC believes that if such companies operate in an honorable and compliant fashion, the industry will have potential for growth.Debt servicing companies can potentially aid those who are looking for help in consolidating federal student loans. With university education becoming more expensive every year, loan relief servicing companies will greatly help those who are in need.
Tags: federal student loan, student loan forgiveness, student loan relief
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