Student Loan Mail Scam

Student Loan Mail Scam

For this week’s blogs we are going to talk a little about Student loans and what to look out for. I like many Americans have student loans and will have them for many years to come.

Things to be discussed this week is to understand how some companies try to take your money because you’re afraid to call, others to take over the loan and make a lot of money off you over the years. And just the general things about student loans and how it affects your credit in more ways than one.

I recently received a letter in the mail talking about student loan consolidation and it was in pink and labeled “FINAL NOTICE”, and if I had issues about my loan. I didn’t of course since I know how they work and the details of it. BUT at the very bottom of the letter where disclosures have to be made in a font size I would classify as maybe 6 a font it stated basically that what they are doing you can do yourself all for FREE if you called the loan people and asked about your options that are available.

NOW… the issue with calling the student loan people is if you have read these blogs before talks about how little most customer service people care about their jobs and the amount of training they have or have not had. So understand they do not care about your story or situation, their job is to get money from you monthly when you call so be ready for them to want to get financial information from you asap. BUT remember, YOU DO NOT HAVE TOO, tell them you’re calling to discuss all potion on the table and later decide what is best for you (not them)

Back to the letter, So there are companies out there that charge hundreds of dollars to look at a list of maybe 3-5 different options concerning your student loans, then take some financial information from you and submit it on your behalf.

Think that was worth it? Awesome to hear you have that money to give to someone for some advice on a short list you could read yourself. Remember, they are YOUR student loans after all so it probably would make sense that you pay some attention to them to know what’s going on with them. Now it is totally normal for people to bury their heads in the sand and put things off time and time again but don’t be afraid, take a deep breath and call them. You are one of millions of millions in the same situation so it will be ok.

So the smartest thing for you to do is call your student loan people and have a pad and a pen ready to write things down or if your computer literate be on their company web page so they can direct you to where to go to get what you are looking for. If you never set up an account before, do that now and verify it so you can be logged in when you call them.

AGAIN, when you call their job is to get you to pay them TODAY!

NOW do not let that worry you or deter you, no one is holding a gun to your head.  So just simply tell them you are doing research first on the matter before you decide what option is best for you just like I mentioned before.

Once they go over the different options and you have the details of them and then ask the rep what option do you think is best for me if:


If your student loans are in good standing then simply ask them which option is best for you and your finances.

Option #2:

If you student loans are not in good standing (meaning delinquent or default) and ask them which option do THEY think is best for your finances AND your credit.



Thank them and tell them you will check back with them to get the ball rolling. THEN hang up and call back in an hour or so (even the next day and go through the same thing with another rep to see if they reach the same conclusion. That is really the only way to make sure which option is best suited specifically for you.

If your loans are in default or delinquent understand that calling them is like calling a collection company. They have monthly ”quotas/goals” they are supposed to meet and need to pull in dollars the moment you call.

They do not care if paying today continues to screw up your credit report and score.

AND GUESS WHAT?  If you start paying them today and you’re in default for an example it’s still reporting in a negative light on your credit the entire time.

IF the representatives say it will stop the negative information reporting on your credit then it will be NO PROBLEM to send you a letter saying that PRIOR to you making a payment.

Once you have any type of negative account or reporting think of it as NOW you’re in the system. And that means nothing but red tape and BS. Nothing anymore is simple and could take much longer than you expect to get out of it.


If you are trying to get an FHA loan and have student loans in default then you will fail what is called a CAIVIRS check which is a federal database of loans to the government as they guarantee the FHA loan so be aware of that and getting out of default could take almost a year.

As I always say credit is the cornerstone of the economy and your credit score is your financial good name. And credit repair is a necessity if you have had any life challenges and of course isn’t that why they call it life?

Being in this industry now for over 12 years and approaching 13 years which is hard for me to imagine sometimes and through those years I believe I have seen almost every scenario there is and sometimes a new one pops up but due to the nature of it I am of a way around it or at the very least know how to mitigate it to affect someone the least way possible.

Feel free to send me an email to (going to break it up for spam purposes)

Wayne @ wayne the credit   (of course no spaces when you use it)

Thanks and talk to you next week!


Student Loan Credit Report Scam?

Ok, allow me first to say that the headline was just an eye catcher to get you to read this article/blog, it’s not like the government is TRYING to scam you.

Or was it?

Let’s break it down for you and everyone out there. As stated in the past at this point I have review approximately 16,000 credit reports in my now 11 years of experience of the credit repair/restoration/management industry.

What amazes me is when I come across a client who has listed 5-20 student loan accounts on their credit and they range from $200- 20,000.00. I have even seen some reporting on a credit file where no payments were ever made and showed what seemed to be a $70.00 loan.

REALLY?? A $70.00 student loan??

Why the department of education and the other student loan lenders out there do not consolidate the loans into one once school is complete is truly beyond me, OR at the very least once school is completed. Many times if a consumer is negligent in paying the bill due to whatever reason then the consumer now has 9 negative slow pays (if they have 9 accts reporting) on their credit which is DEVASTATING to their credit as opposed to if the accounts were consolidated into one account with the creditor.

The other thing to point out is we NEED to get consumers out there to identify this horrible potential to destroy their credit file and get PROACTIVE, after all knowledge is power!

So what can you do?

FIRST thing is to contact the lender and understand the first person you will talk to is a customer service representative who has little to no authority to do anything that can help you for what you truly need. You NEED to be proactive when approaching this situation.

Now this is not a knock against customer service representatives but in my experience the bad ones (meaning ones that don’t care) greatly outnumber the few goods ones out there.

In my experience I have never come across anyone who has made the job of customer service as a career. In my experience they are poorly trained (try googling Comcast customer service complaints) or they just don’t care as it’s a 9-5 job.

Most student loans are federally guaranteed by the department of education. But don’t expect them to be leaping to help you by any manner. Understand that this is your life and your responsibilities so you need to be proactive in this and as you’re the only one who truly gets affected by this so it’s in your hands.

Your credit score needs to be good in order to do this, typically a 660 on average. Check with your current bank to see if they offer student loan consolidation. If they do then have your credit reports with you and layout just how many active “student loan accounts”.

What you want to do is limit risk if something happens and eliminate the ability to let something slip by.

NOTE: I had a client one time who had three 150.00 student loan accounts they had no clue about. And then of course something slipped by and now they had 3 negative accounts reporting current 90 day late payments. Destroying their credit for at least a year and that is with credit repair help.

Now when you Consolidate loans typically you increase the length of time the loan is paid back which of course means smaller payments but MORE of them. So you need to look at this in the same way you look at a home loan.

If they give you a 30 year payment plan ask for a amortization schedule of the loan repayments so you can see exactly how much money every month is going towards principle and how much goes towards interest and at least now you have an idea where you money is going.

And with proper planning you can identity if you make 1 extra payment per year or a few dollars extra per month how much that can lower the total time frame of paying off the student loan.


  1. Depending on your career some allow your student loans to be greatly reduced and even forgiven. Click on the link below to see

  1. You CANNOT discharge your student loan debt by filing bankruptcy as a whole, but there are cases where it can happen. Check out the link below to see some examples and if they correlate to you.

  1. Student loans can file to have a portion of your paycheck withheld as well as your tax returns. (Individual states may vary so check with yours).

NOTE: the links I have attached are for informational purposes only and I take no responsibility to their reliability. They are merely for a measuring stick to guide you some possible tools to help you the consumer.

Want to learn more about how the world of credit works? Contact me today and get my book in full blown color. No nonsense direct answers and easy to understand.

how the “Real world of credit” works.

And of course if you need some credit work to increase your credit score then call me today to discuss!