The Iowa Attorney General’s Office is warning college students to beware of “loan rescue” organizations. These businesses will promise to help arrange federal student loan forgiveness or other loan benefits in exchange for an up-front fee. Some are also charging monthly maintenance fees. Postsecondary Registration Administrator for Iowa College Aid, Carolyn Small, says are not doing anything for students that they can’t already get for free from their federal student loan servicer. “Rescue companies often go by names that imply they are government agencies or nonprofit organizations, and one even tried using the U.S. Department of Education logo,” Small says. Iowa Attorney General, Tom Miller, says they are criminals, looking to steal identities and money. Those borrowers who are looking for help in lowering their monthly payments, postponing repayments or applying for loan forgiveness can do so at no charge by contacting their federal student loan servicer directly. Details can also be found on the U.S. Department of Education’s Federal Student Aid website at StudentAid.gov. Iowa also offers forgiveness programs, with more details at IowaCollegeAid.gov. Small advises those seeking forgiveness programs avoid generalized online searches as these will likely lead to paid results. She also says to never give your loan rescue company your Federal Student Aid ID. If you feel you have been victimized by one of these companies, you can file a complaint with the Iowa Attorney General’s Consumer Protection Division through the link included with this story on our website.
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To file a complaint: https://www.iowaattorneygeneral.gov/for-consumers/file-a-consumer-complaint/?utm_medium=email&utm_source=govdelivery
