Beware Student Loan Scams

As student loan payments resume, it’s important to be aware of scammers trying to profit off of student loan borrowers and steal personal information. Student loan scams are growing rapidly; learn how to spot the red flags and keep yourself safe.  

Here’s what the scam looks like: Scammers are pretending to be government officials and offering fake services, such as debt forgiveness  if the borrower pays an upfront fee.  Additionally, fraudsters are requesting payment for services that are actually free.  Scammers have gotten very skilled at creating realistic (but false) logos, titles and messages so it’s important to remain vigilant and only trust information from verified sources.  

Borrowers will never have to pay to manage their student loans. And loan forgiveness for eligible borrowers can only be granted by the Department of Education.  Offers for quick loan forgiveness are fraudulent. As always, if it sounds too good to be true, it’s a scam. 

How to protect yourself:

• Never give away your Federal Student Aid (FSA) ID or information.
• Never trust anyone who contacts you promising debt relief or loan forgiveness, even if they say they are from the Department of Education
• You don’t have to pay for help managing your student loans. These services are available for free.

To find accurate information about you loan details, repayment, forgiveness and management options, visit Federal Student Aid at https://studentaid.gov/

For more information about student loan scams, check out these articles from CBS News and the Federal Trade Commission: