Money

If you can learn how to manage one, you can transfer those skills to managing the other. Here are a few ways that managing money is like managing time and how you can master both: 

When you manage it well, there’s more of it.

Successfully managing your money requires a budget, one that you can work with weekly and monthly to stay on top of your spending and saving and track your income. Managing your time is similar. Using a calendar or task list to stay on top of what needs to be done and what you’ve accomplished will help you stay productive. Using a budget for your money and calendar for your time will help you successfully manage both. 

There are limitations.

There are only so many hours in the day so you have to use them to the best benefit. Wasting them means you’re not as productive. The same goes for money. While you do continually replenish your money with new earnings, there is a limit to how much you currently have. Wasting it on things you don’t really need leaves less of it for the things you do. 

Prioritizing helps stretch it further.

Prioritizing both your tasks and your spending allows you to accomplish more with what you have. Instead of just doing or spending without a purpose, prioritize what matters most so you feel better about how you spent both time and money. 

Planning is a must. 

If you’ve ever lost track of time or that $20 you withdrew from the ATM yesterday, you know that if you don’t plan you’ll end up wasting. Have a plan each day for how you will spend your time and your money so you don’t find they slipped away. 

Write it down.

Our brains are overloaded every day with tons of information to remember. Make sure you don’t forget something important by writing it down. Keep a task list of things you need to accomplish each day and make a list of all bills you need to pay with your next paycheck. Make the things on your list a top priority and get them done first, before anything else. 

Have focus.

Know your goals, both for your time and your money. Creating goals and staying focused on the end result you want to accomplish will make it easier to stay on track. This will also help you prioritize what matters most. 

Review and adjust.

Continually reviewing how you spend your time and your money as necessary to make sure it’s working for you. If it’s not, you can make adjustments to your budget or your schedule until you find the plan that fits just right. 

Managing your money and managing your time have a lot of similarities. If you’re able to be successful at one, carry those habits over to the other for even greater success. 

Union Plus Credit Counseling 

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

Learn More

One of the more troubling common reasons why someone may be struggling to repay their debt is quite possibly the simplest: they just can’t. They don’t have the money. They’re either without income or that income is only enough to cover the barest essentials.

Here at MMI, our debt and budget counselors hear it over and over again. “I want to repay my debts, but I just don’t have the money. What can you do for me?” It’s a fair question. What can you possibly do about debt when there’s no money to spare?

Paying nothing, doing nothing

What happens when you do nothing at all? If you ignore your bills and you make no payments, your accounts will become delinquent. If you’ve ever been delinquent on a debt, you probably know that creditors get a little antsy when you stop paying them. You’ll likely get phone calls and letters reminding you that you’re past due and asking for a payment.

Eventually, unpaid debts are charged off – meaning the creditor writes them off as a loss. That doesn’t mean the debt disappears, however, or that you no longer owe the money. The creditor may transfer the debt to an in-house collection department, or, more commonly, they’ll sell the debt to a third party debt collection agency.

The debt collection agency buys the debt for a fraction of its value (they may pay $2,000 for a $10,000 debt, for example), but they have the right to collect the debt in full. They will pursue you for the money, with persistent letters and phone calls. If they have no success getting you to pay, they may ultimately choose to sell the debt once more, and the cycle will continue with a new debt collector.

Lawsuits and garnishment

This debt collection dance could potentially go on for years and years. Even once the negative marks start falling off your credit report seven years later, the creditor of record still has a right to attempt to collect their money. And you may choose to continue ignoring them. In this scenario, your credit takes a pretty vicious beating and you’ve collected a tidy stack of angry letters, but you haven’t actually paid anything. How long can that go on?

Ultimately, it depends largely on the size of your debt and the disposition of your creditor. Credit is usually extended under an agreement that spells out who’s required to do what. Once you stop repaying your debts, you’ve very likely broken that agreement and the creditor in question has every right to take you to court in pursuit of that money. In most cases, should a creditor take you to court and win the case, your wages will be garnished, with a percentage taken out automatically and directed towards your debt.

So will your particular creditor sue you if you stop paying? The process of seeking compensation through the court system takes time and resources, which means that the likelihood of being sued increases with the size of your delinquent debt. Should you assume that a creditor won’t sue you? No. Definitely don’t do that. Having your wages garnished isn’t the end of the world, but you should seek to avoid it at all costs.

What about debt settlement?

Debt settlement becomes an option once your debts have been charged off. Because the debt has probably been sold for substantially less than its original value, the debt’s owner may be willing to accept less than what’s owed (assuming that’s more than what they paid for it).

With debt settlement you aren’t paying back the full debt, but you are paying. There’s the cost of agreed upon settlement, plus the costs associated with whatever damage your credit has taken, as well as the amount you’re taxed on the forgiven debt (the amount owed that you didn’t pay is considered income and needs to be factored in when completing your tax returns).

What about bankruptcy?

Bankruptcy has long been viewed as a last resort of sorts, but it’s a perfectly valid way to attempt to separate yourself from crushing debt and start over. It’s far from free, however.

How much it costs to complete the bankruptcy filing process is going to vary wildly, depending on factors like where you live, how much debt you have, and what of assets you own. You should expect to pay somewhere (very roughly) between $1,500 and $6,000.

Another thing to keep in mind is the difference between Chapter 7 bankruptcy and Chapter 13. Broadly speaking, Chapter 7 involves the liquidation of your nonessential, non-exempt property to help repay your creditors, while Chapter 13 centers on the creation of a wage-earner plan, where your debts are adjusted according to your circumstances and you make regular payments out of your remaining disposable income. You’ll notice that in both version you still end up making some form of payment to your creditors.

So, circling back to the original question – is it possible to get out of debt without paying anyone anything? Unfortunately no, not really. You can certainly attempt to ignore your debts, and you may even find there are circumstances where creditors and collectors may just give up on trying to collect from you. But that doesn’t mean you’re out of debt. And the possibility exists that they may someday change their mind and come looking for their money once more.

If you’re overwhelmed with debt and unsure what options make sense for your situation, consider speaking with a certified debt and budget counselor from Money Management International. Counseling is free, available 24/7, and a great way to get unbiased advice and suggested next steps.

But there are a few things that aren’t worth the “deal” you may receive in December; you’ll do better to wait.

Bedding

Blankets, sheets, and pillows usually look like great deals on Black Friday or over the holiday season, but you can save more if you wait until January. Many stores like Macy’s, Kohl’s, Bed Bath & Beyond, and Overstock have white sales in January and put all their bedding, towels, and other linens on sale. On average you can save as much as 50 percent, sometimes more, by waiting until January.

Jewelry

New bling always makes a great holiday gift, but December is not the time to buy. Just after the holidays and in the week or two before Valentine’s Day you’ll find the biggest sales.

Cruises

If you didn’t book it in the first week of December, wait until after the holidays. Cruise packages are at their lowest for the first few days of the month, but then the prices double, or even triple, the closer you get to the holidays. If you want to go somewhere warm over the winter, wait until January to book your trip.

Exercise

Equipment Black Friday and holiday deals may look good for expensive exercise equipment, but the prices are at their absolute lowest in the beginning of January when everyone is thinking about New Year’s Resolutions. If you want a new treadmill, wait until the first week of January.

Computers

Need a new laptop? If you can, wait until the summer. You’ll find some sales over the holidays, but the best deals will be late spring to mid-summer during the back-to-school season. By waiting a few months you can save anywhere from 30 percent to 50 percent.

Winter Clothes

Many retailers are offering great deals for gift giving, but if you can wait a little longer all those things you want will be on clearance. When the spring and summer clothes start to appear, all the winter clothes will be marked down as much as 70 percent off.

New Car

If you’re in the market for a new car, the best day to negotiate the best price is New Year’s Eve. Why? Dealers have monthly, quarterly, and yearly sales goal to meet and all those goals come together at the end of December. You’ll find dealers are in more of a negotiating mood when they have a goal they need to meet quickly.

Christmas Decorations

It may seem strange to avoid buying Christmas decorations near Christmas, but that’s when they are most expensive. If you can wait until anytime between December 26th and early January you’ll find all those decorations on sale for 50 percent to 70 percent off. Then just store them away for next year.

Mattress

If you’re in the market for a new bed, you’re better off waiting until Memorial Day weekend when you’ll find even deeper discounts than the holiday season. Labor Day weekend is a close second, with deals almost as good as Memorial Day.

Final Sale Items

While the prices may be great, you won’t be able to return or exchange it if it doesn’t quite fit. If you’re shopping for a gift, this is probably not the best option.

There are plenty of sales that are worth it in December, but avoid these ten items if you can. You’ll find a better bargain at another time.

Union Plus Credit Counseling 

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.
 

Of course, even if you budget each paycheck meticulously, things will go awry. Which raises a major dilemma: what exactly do you do if you’re in between paychecks and the money runs out?

Don’t panic

So there’s no cash available and you don’t get paid until Friday. Okay. Stay calm. It’s a naturally stressful situation, and it’s understandable to feel a little panicked.

The last thing you want to do, however, is make a rash decision. Rash decisions have a tendency to make things worse. So take a breath and let’s a find a way through this.

Review your bills

When are your bills due? Is there anything due before your next paycheck?

Failing to pay your bills on time will very likely result in fees and other penalties that will only make things more difficult going forward. If you have a bill coming due before your next paycheck, reach out and ask about the possibility of an extension. The more you can do to prevent your accounts becoming the delinquent, the better.

Plan ahead

Are there any expenses between now and your next paycheck? Consider all the costs coming up and put them in order of priority. Separate the “wants” from the “needs”. What can be skipped or delayed, and what absolutely cannot be put off until your next paycheck.You may need to make some difficult decisions - understanding your priorities can make those difficult decisions a little easier.

Consider your options

If your cash is temporarily dried up, your next option is usually credit. Do you have a credit card, and if so, how much credit do you have available?

You always have to be careful when using credit in emergency situations. Eventually, you will need to pay those charges off. You don’t want to simply push today’s problems into tomorrow and end up making a worse situation for yourself. It’s best to have a plan for repayment in place as soon as possible. Build it into your budget and do your best to avoid any interest charges if you can.

You might consider using a payday loan. If so, be cautious – payday loans can be disastrous in certain circumstances. The best advice is to never use a payday loan unless you can definitely pay back the entire loan in one cycle. In any event, payday loans have significantly high interest rates and should generally only be used as a last resort.

A better, though sometimes painful alternative may be to borrow money from a friend or relative. If you do need to ask a loved one for money, do your best to set reasonable expectations (when you plan to repay) and follow through. If you face a setback, let them know and make every effort to pay them back as soon as possible.

Being broke is challenging and deeply unpleasant. However, if you’re proactive, organized, and diligent, you can minimize a lot of that unpleasantness and avoid making a bad situation even worse.

Union Plus Credit Counseling 

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

Learn More 

When my uncle’s union went on strike in the early 1980s, members of other organizations rallied around him and his co-workers until they went back to work. Christmas still happened. No meals were missed. The union kept all of the electricians comfortable during a very uncomfortable time.

It’s that sort of protection and camaraderie that draws people to employee unions in the first place. In fact, 14.6 million Americans were part of a union in 2016. After all, you can never have too much insurance in case of injury, disability, strike, or loss of employment.

That’s the thinking that has made Union Plus benefits a mainstay in the lives of more than 12 million members nationwide. Created by the AFL-CIO in 1986, the nonprofit Union Privilege supports the labor movement with financial and lifestyle products (called Union Plus benefits) designed for union members and their families. Among the original, and most popular, offerings are a trio of Mastercard-branded credit cards issued by Capital One that meet a host of needs.

Whether you’re looking to rebuild credit or earn cash back on purchases, there are ways to get even more from a Union Plus Credit Card. And since Union Plus has been involved with the labor movement so long, it has learned the needs of union members change over time.

That same knowledge was used when developing a package of hardship benefits that offer grants to meet many needs, all at no extra cost.

“The goal was to create non-employment-based benefits that enhance the experience of being a union member,” said Roger Pollack, Head of the Union Plus Credit Program. “The credit card program was one of the first products established. Most of our employees have worked with the labor movement in some capacity before moving over to Union Plus. We’re proud of our work every day, to be able to work with and serve the millions of people who are lucky enough to have the union on their side.”

Current and retired union members are automatically eligible to apply for and use their union’s Union Plus benefits — no membership in Union Plus is required. Benefits range from discounts on entertainment options, like theme parks and movie tickets, all the way up to price breaks on monthly bills, like insurances and cell phone plans through AT&T, the country’s only unionized mobile carrier.

Hardship Grants Provide Relief During Strikes or Disability

Strikes happen — as do medical issues, job loss, and other types of financial hardship. While nobody wants these things to happen, they are a part of life and a key reason why millions of Americans join unions. To help keep your life intact when things get tough, Union Plus curated a package of benefits that includes single-use grants for financial assistance when you need it most.

“We have a special cardholder assistance program that offers the opportunity to apply for small- to medium-sized grants,” Roger said. “These help if you were to lose your job, become disabled, or if you were to incur a hospital or medical bill that you don’t have any coverage for. That’s just one of the special benefits designed for union members.”

The grants for eligible credit cardholders include a $300 strike grant, a similar job loss grant, or as much as $1,200 in hospital grant money.

“Those grants are paid directly to the cardholder,” Roger said. “They come from a trust that we established as a reserve to cover the grant program. If one of our cardholders is in trouble, we help out in a very direct way.”

Get the Credit You Deserve with the Benefits You Require

Union Plus has more than one million credit cardholders spread throughout all 50 states. The three cards offered are similar to regular consumer offerings through Capital One, but with the added layer of union benefits not seen through other issuers.

Those benefits are part of the reason why 90% of surveyed cardholders said they’d recommend the cards to others.

“We have a lot of folks who have been in the program for a really long time,” Roger said. “They’re people who support their union and are proud to be union members. They’re proud to be able to show their union card. Plus, our service is strong. What tends to yield a high satisfaction score is when people call up, they get their problems resolved quickly. We work hard to do that every day and for all of our cardholders.”

The Union Plus credit cards come in three options, each serving very particular needs.

Build Your Credit Profile Via Responsible Use with the Primary Access Card

The first tier of Union Plus’ credit card offerings is the Primary Access Card. This card has credit limits between $300 and $3,500, and a 24.24% variable APR. Credit limits may increase after making your first five payments on time, and the card does not come with an annual fee.

This card, along with the benefits and hardship grants that all of the cards carry, is a great starter for building — or rebuilding — credit over time.

Eliminate Balances with the Help of the Rate Advantage Card

If you have a balance on another credit card with a higher-than-average APR, Rate Advantage might be the card you need to eliminate that debt without overpaying on interest. Starting with a 0% APR for the first 15 months on all purchases and transfers, this card is ideal for anyone that wants to carry, or will likely build, a balance that can’t be paid off immediately.

Based on creditworthiness, a variable 11.9%-to-21.9% APR follows the introductory period. Credit limits range between $500 and $7,500, and the card comes with no annual fee.

“This card is definitely for people who are likely to be revolvers,” Roger said. “The idea is to have a competitively priced card, in terms of retail APR, that allows our cardholders to save on interest by transferring higher-rate balances and to use their money on things that are important to them.”

Earn 1.5% Cashback on Every Purchase with No Annual Fee

With a 0% intro APR for 12 months on all purchases and transfers, and rates of either 13.9%, 19.9%, or 23.74% afterward, depending on creditworthiness, the Union Plus Cash Rewards Card is packed with the perks most people look for in a go-to rewards card. The Cash Rewards Card earns an unlimited 1.5% in cash back on every purchase with no annual fee, and credit limits that extend as high as $10,000.

If you’re a regular credit user who doesn’t often keep a revolving balance, this card allows you to accrue rewards for purchases you’d already be making. You can let that money accumulate over time to put toward a larger purchase, use it toward lowering your balance, or as a bonus to treat yourself on a rainy day. The possibilities are whatever you want them to be.

Make Your Union Plus Credit Card Work for You

No one ever wants to think about the worst-case scenario, but smart workers always make sure they’re protected — just in case. Be it through a union membership or as part of the Union Plus benefits program, you can never have too much protection.

With the trio of credit card offerings from Union Plus, you may have access to the credit you need while adding the hardship benefits and discount packages at no extra cost.

If you or a loved one are a member or retired member of a union, the advantages of Union Plus extend beyond credit cards into all sectors of your financial well-being.

“We have a wide array of products,” Roger said. “Credit cards are one of our oldest and strongest, but we’ve always had a really good mortgage program and a strong discount benefits program with AT&T. We also have a new program where we’re partnering with eHealth to help members figure out what the best Medicare products are. We’re continuing to innovate in areas like that to meet the needs of union members.”

• Make a list and a budget. Include incidentals, like cards, wrapping paper and eating out. 
• Check out websites that compare prices for items sold online, and at stores in your area.
• Look for rebates. Some can be redeemed at checkout, but most require you to send documentation to the manufacturer to get your rebate.
• Make sure the scanned price is right. Overcharges cost you money and time, especially if you don’t notice them right away.
• Consider customer reviews carefully. The law says reviewers should disclose their connection to a company, but not all of them do. Before you buy anything based on a review, search online for information from sources you trust. Compare reviews from a variety of websites.
• Giving jewelry? Take some time to learn the terms used in the industry so you can get the best quality and value.
• If you use a mobile device or computer to shop for deals, be aware that some unexpected emails, texts or posts may lead to fraudulent sites claiming bargains on brand name products.
• Save receipts. When you’re shopping online, keep copies of your order number, the refund and return policies, shipping costs and warranties.
• Billed for merchandise that wasn’t received? Here’s what to do.
• If money’s tight, consider layaway. You typically make a deposit and pay over time; the retailer holds the merchandise until you’ve paid for the item in full.

For instance, a group operating as Tarr, Inc. settled FTC allegations that it ran a deceptive internet marketing campaign to sell weight-loss, muscle-building and wrinkle-reducing products. The FTC says Tarr used phony news stories and magazine reports, phony celebrity endorsements and customer testimonials, false claims, and sham “free trials” to sell the products. People agreed to pay the shipping costs for the trials, but Tarr allegedly didn’t make it clear that it would charge consumers for the trials and automatically enroll them in a subscription program unless they cancelled within a couple of weeks. In all, consumers paid about $180 million over five years for products that the FTC claims Tarr sold through deceptive marketing.

Avoid getting scammed by deceptive product offers:

• Read the fine print for a “low cost” or “free” trial offer. Look for terms such as enrollment in an ongoing subscription. This often means automatic debits or charges to your accounts. If you don’t understand the terms of the offer, don't sign up.
• Watch for pre-checked boxes, which the company may claim gives it permission to keep billing you after the trial. Be sure to set a reminder of when the free trial period is over to avoid getting billed if you no longer want the product.
• Learn how to spot phony news sites. These actually are elaborate ads created by marketers to look like news sites.
• Be skeptical about products that promise miraculous results. And just because a celebrity or a believable-looking “customer” appears to be praising the product doesn’t mean it’s trustworthy.

Tell the FTC if you experience a deceptive product offer.

As a hardworking union member, you have a lot to keep track of. You stay on top of your responsibilities at work. You take care of your family at home. The last thing you need is another item on your to-do list. That’s why your Union Plus Credit Card now works even harder for you. With new features that make managing your account easier and more secure than before, you’ll have more time to focus on what matters most.

1. Manage your account on the go with the Capital One Mobile app.
   
   All it takes to check on your Union Plus Credit Card is a few quick taps. The highly rated* Capital One Mobile app makes viewing your account balance, recent transactions and even making payments simple. No matter how tech savvy you are (or aren’t), this app will work with you, at your speed, to make account management even easier.
    
2. Help protect your credit with CreditWise®.
   
   CreditWise is an easy-to-use tool that has your back by helping you keep track of and protect your credit. Review your free TransUnion® credit report update every 7 days for signs of error, theft or fraud. If you see something suspicious, CreditWise will tell you what to do next. It’s easy to stay on top of your credit with automatic alerts that let you know when something changes on your TransUnion credit report.
    
3. Keep an eye on your card with account notifications.
   
   With your busy schedule, it’s hard to keep an eye on every purchase, so custom alerts can do the monitoring for you. You can set them up to send payment reminders, account balance and suspicious activity notifications. Plus, you choose how you want to be contacted—email, text, push notifications or all 3. 

These are just a few of the helpful features you’ll have access to when you enroll in our new online experience for Union Plus Credit Cardholders. If you’re ready to get started, click below.

Enroll Your Card 

If you don’t yet have a Union Plus Credit Card, apply today to access exclusive union benefits and online features.

Unfortunately, there’s a cost to this reverie, whether you’re serving as host or traveling across state lines to visit beloved relatives. With some major holiday spending on the horizon, it’s reasonable to wonder if you’re justified investing so much on Thanksgiving. If you’re concerned about the cost of your Turkey Day celebration, here are a few tips to ensure your happiness and your budget stay in alignment.

Understand Your Thanksgiving Priorities

What’s important to you when it comes to Thanksgiving? The day has different meanings for different people. Are there certain people you absolutely have to spend the day with? Is it all about the food? Do you not really care about anything other than playing touch football in the yard?

Try to step back from what you believe is “expected” from the day and canvass around to understand what you and your family actually care about. You may be surprised. If you’re spending money on things that don’t reflect your true priorities, then you may want to consider changing how you approach the holiday.

Evaluate Your Menu

Cooking an entire Thanksgiving feast can be costly, especially as many families create enormous, diverse Thanksgiving menus in the hopes of appeasing everyone. The truth of the matter, however, is that just because you’ve got one cousin who likes creamed pearl onions, doesn’t mean you have to make them.

Try not to get too wrapped up in tradition. Just because you’ve made something in the past, doesn’t mean you’re required to make it every year. It goes back to your priorities – is Thanksgiving not Thanksgiving without pickled beets? Maybe! That’s for you to decide.
Consider your food waste. Leftovers are great, but how much food goes to waste each year? It may be because you’re making too much food, or there may be certain items that simply aren’t all that popular and can be taken off the menu. Don’t be afraid to change things up from year to year, especially if your top Thanksgiving priority isn’t “Do everything the same every single year.”

Invest in a Plan

One of the best ways to reduce expenses and stress is to plan ahead. Know where you’re going, what you’re making, what you want, and how you plan on making it all happen. Planning your menu in advance allows you to scope out deals and stock up on necessary items before the last minute rush. Plotting out a plan of attack for all that cooking goes a long way towards making sure nothing is undercooked, overcooked, or just plain forgotten.

A good Thanksgiving plan also allows you to coordinate with guests and hosts alike to help share some of the burden and save a good deal of money in the process.

If You Want to Spend, Spend! Just Make Cuts Elsewhere

If Thanksgiving is your favorite holiday and you can’t bear the thought of cutting or reducing anything at all, then…don’t. It’s perfectly okay to spend however you like on Thanksgiving, especially if it’s a special time of year for you and your family. The only caveat is that if you’re spending money you don’t have set aside or budgeted out, you’ll need to make up for that elsewhere.

Ideally those adjustments should come sooner rather than later. Don’t put yourself into debt and say, “Well, I’ll worry about it next year.” If you’re allowing yourself to overspend on the holidays (and by “overspend” I mean spend money you haven’t already accounted for in your budget, putting yourself in debt) you need to have a plan in place to make up that difference. Even if that plan is nothing more complex than subtracting $20 off the top of every paycheck until you’re back to normal, you can’t break your budget without it.

The most important thing is living a healthy, happy life. Your money and your budget are just a means to that end. If happiness is a big bowl of creamed pearl onions, well, you’re an oddball, but that’s okay. Do what makes you happy. Just remember the parts that don’t make you so happy – like struggling to pay your bills, or not saving as much as you’d like – and do the necessary work to make sure the unhappy parts don’t spoil the good times.

Union Plus Credit Counseling 

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

Learn More 

Earlier this year, the FTC announced Operation Game of Loans, a joint FTC and state law enforcement sweep against student loan debt relief scammers. The operation includes seven actions filed by the FTC.

In the FTC cases, the companies claimed to be affiliated with the government or the consumer’s loan servicer, and promised to reduce or eliminate student loan debt. They told people they were “pre-approved,” “pre-qualified” or “qualified instantly,” then pressured them to sign up for their programs on the spot. Enrolling required consumers to pay illegal advance fees of up to $1,500.
So what did these companies actually do? Usually nothing. Consumers were often left worse off, or received minimal help for services they could have gotten from their loan servicer or the U.S. Department of Education for free.

You don’t have to pay for help with your student loans. There’s nothing a company can do for you that you cannot do yourself for free. If you are a federal borrower, start with StudentAid.gov/repay. If you are a private borrower, start by talking with your loan servicer.

Here are some tips to avoid scams:

• Never pay an up-front fee. It’s illegal for companies to charge you in advance before helping you. If you pay upfront to reduce or get rid of your student loan debt, you might not get any help — or your money back.
• Only scammers promise fast loan forgiveness. Before they know your situation, scammers might say they can quickly get rid of your loans through a loan forgiveness program. But they can’t.
• A Department of Education seal doesn’t mean it’s legit. Scammers use official-looking names and logos, and say they have special access to certain federal programs. They don’t.
• Don’t share your FSA ID with anyone. Scammers could use it to get into your account and take control of your personal information.

Spotted a scam? Let us know about it.

For more resources on student loans, check out our new page: ftc.gov/StudentLoans.
 

Union Plus Scholarship Program 

Looking for additional resources to help pay for your education? The Union Plus Scholarship Program may be able to help. Since 1991, the Union Plus Scholarship Program has awarded more than $4.2 million to students of working families who want to begin or continue their post-secondary education. Over 2,800 families have benefited from our commitment to higher education.

Learn More Here