Whether you are still a student, or finished with “back to school” season, don’t fall victim to scams that prey upon those who have taken out student loans.
Many people have student loans, making current and former students an attractive target for scammers. Some businesses may claim they can help you pay your loans, by paying quicker, cutting your payments, or getting your loans forgiven. Watch out – these businesses may be targeting you for a scam.
Usually, these scam artists will share similar characteristics. You may have to pay in advance, and may not receive services or refund in return. The business may have marks of being official, like using a Department of Education seal or saying that they have special access to federal programs, when they are unaffiliated with the government. They may ask for your Federal Student ID, which can be used to take control of your information on government student loan sites. You may be promised your loans can be forgiven quickly, when they don’t even know your financial situation. Don’t fall for it.
Instead, consider visiting the free federal loan website StudentAid.gov/repay to learn your repayment options, and for private borrowers, talk with your loan servicer.