Scammers have stolen millions of dollars from student loan borrowers. Individual borrowers have lost hundreds, and, in some cases, thousands of dollars. Scammers often target distressed borrowers or people looking for help to manage their loans.
Identify the Red Flags and protect yourself:
Aggressive Advertising Language
Scammers often try to create a sense of urgency, claiming a limited-time offer or immediate action needed; be cautious and do your own research before taking any action. Be wary of unsolicited offers. Here are some examples of false claims you might see:
"Act immediately to qualify for student loan forgiveness before the program is discontinued."
"Your student loans may qualify for complete discharge."
"Student alerts: Your student loan is flagged for forgiveness pending verification. Call now!"
Promises that are Too Good to Be True
Watch out for offers promising "instant" loan forgiveness, large upfront fees, or claims of special access to government programs. Most government forgiveness programs require years of qualifying payments and/or employment in certain fields before forgiving loans.
Request for Log-In Info
NEVER give out your Federal Student Aid (FSA) ID, SSN or banking details to anyone contacting you about student loans unless you initiated the contact. The US Department of Education, and their partners, will NEVER ask for your sensitive information.
Unofficial Address or Phone Numbers
Some Scammers may use official-looking names, seals and logos; but that doesn't make them legitimate. Always verify that any communication regarding your student loans comes directly from the Department of Education, your loan servicer, or a recognized official source.
If you have any questions about your student loans, always reach out to your loan servicer through a known contact number or website. Keep an eye out for any unusual capitalization, improper grammar, or incomplete sentences – these sorts of errors indicate a potential scam in action.