After more than three years of pause, federal student loan repayments have resumed as of October 2023. While this news is a significant development for borrowers, it has also created an opportunity for scammers to prey on students.
Fraudsters/scammers claim to offer assistance in avoiding repayment, lowering monthly payments, or even promising loan forgiveness — all for a price. In this environment, staying informed and vigilant is crucial to avoid falling victim to these predatory schemes.
Here are some tips and insights to help you safeguard your financial well-being.
Avoiding Student Loan Forgiveness Scams
Rely on Trusted Sources
The most reliable source of information on federal student loans is Federal Student Aid, which is a division under the Department of Education. Be cautious of unsolicited calls, texts, or emails offering assistance. Scammers often pose as official entities, using names, seals, and logos that appear legitimate.
To verify any information, go directly to the official Federal Student Aid website at studentaid.gov/repay or the FTC website. Remember, you don’t need to pay for programs to lower your payments or receive forgiveness — legitimate assistance is free.
Protect Your FSA ID Login Information
Your Federal Student Aid (FSA) ID is crucial information that scammers may try to exploit. Do not share your FSA ID login information with anyone claiming they need it to help you. If you provide this information, scammers can sever contact between you and your loan servicer, potentially leading to identity theft. Always exercise caution and keep your login credentials confidential.
Scammers often promise debt relief or loan forgiveness, even claiming affiliation with the Department of Education. These offers may come with official-sounding names and logos to appear legitimate. However, it’s essential to know that special access to repayment plans or forgiveness options that require payment does not exist. If you receive such offers, take a moment to verify by logging into your student loan account and reviewing your options directly.
Stay Informed and Take Proactive Steps
As you prepare for the resumption of student loan repayments, consider the following steps:
- Update contact information: Ensure your contact information is up-to-date with Federal Student Aid and your loan servicers; this helps you receive timely updates about your repayment plans.
- Enroll in a Repayment Plan: Use the FSA Loan Simulator to estimate your monthly payments and explore different repayment options. If you’ve defaulted on your loans, look into programs like the Fresh Start initiative.
Student Loan Forgiveness Scams – Seek Legal Assistance
If you believe you’ve been targeted by student loan scammers or have encountered issues with your student loan collections, it’s crucial to seek professional advice.
An experienced student loan or consumer protection lawyer can assist. Legal professionals understand the complexities of student loan issues and can help hold scammers and predatory entities accountable for their actions.
If you need legal support, please contact our student loan attorneys, who can assist you in sorting out issues the fraudsters have caused and seek damages from those who enabled them.