Ask Matt: No one should pay for student loan help

I have been approached by multiple companies offering to help with forgiveness on my student loans. Are these offers too good to be true?

The most important thing to remember: No one should pay for help with their student loans! Many companies that offer student loan assistance request money up front, as well as a continuous monthly fee. Federal forgiveness programs are free, so while it’s nice to get help navigating the programs, you don’t have to pay for it.

A lot of companies make their offers very unclear. They’ll state things like, “We can help forgive your student loans with this limited-time offer.” They don’t make it clear that their offers are actually the free federal forgiveness programs already available to you.

Additionally, some companies will have you sign a limited power of attorney, which is a legal document that allows them to take certain actions on your behalf. It’s important to remember that signing a power of attorney could leave you vulnerable to fraudulent activity.

My thoughts? Don’t pay—come to us, and let us help you consider the best options for you and answer any questions you have.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation. Horace Mann is a private company not affiliated with the Department of Education or the federal government. Horace Mann does not negotiate, adjust or settle debts. No assistance provided by Horace Mann constitutes official action for purposes of the government program or guaranteed results.

WBTL-0811 (Mar. 20)

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