The biggest news this week is all about the traps and pitfalls awaiting consumers when it comes to student loans, identity theft and payday loans.
4 Ways to Deal With Student Loan Debt Collectors
Student debt expert Mitchell Weiss has received a lot of requests from readers who are struggling to work with student loan collection companies in finding a way to pay down their balances.
In this article, Weiss explains that the collection companies hired by student loan originators are more apt to put borrowers into loan “fixes” that actually can hurt the borrower in the long run. He warns consumers to make sure they don’t sign up for a loan modification that allows the loan to become negatively amortized, thus adding to the balance of the loan in the long run, while lowering payments in the short term.