Traditionally, this is the time of year when aspiring graduates are planning their walk across the stage to claim their diploma. Shortly thereafter, the student loan repayment process begins. However, scammers are taking advantage of recent changes to student loan repayment programs in order confuse borrowers, tricking them into falling for a variety of schemes.
Currently payments are paused on virtually all federal student loans through Aug. 31, 2022, and no interest is accruing. But just because student loan repayment is on pause, doesn't mean that scams are.
Better Business Bureau encourages graduates to carefully research trustworthy sources related to federal repayment plans before giving any personal information. Watch out for companies promising to reduce debt by lowering payments through enrollment in student loan forgiveness or other programs. They may also falsely promise to apply monthly payments to consumers’ student loans and to improve credit scores- all you have to do is pay a small fee so they can negotiate with the lender on your behalf.
In another version, dishonest collectors claim they can save money by consolidating loans - if a minimal fee is paid. Keep all of your personal information private and never give it to an unsolicited source.
Here are some tips to help protect yourself from scammers. Research the lender. If you have been a victim of a suspected scam, report it at BBB.org/ScamTracker.
Empty promises lead to an empty wallet and more debt. Only scammers promise fast loan forgiveness. Scammers often pretend to be affiliated with the government. Never pay a fee upfront for help. Never share sensitive information, such as your FSA ID.
