Greg's Corner

It’s time again for student debt relief scams

By Greg Collier

With all the politicizing that has happened around student debt relief in the past few years, it’s no wonder people are confused about the status of their student loans. This month, federal student loan payments are set to resume. With that, scammers have become reinvigorated to prey on the confusion of those with student loan debt and are out in full force to take financial advantage of those who were already struggling to make their loan payments.

These scams typically involve deceptive tactics that promise swift and complete relief from student loan obligations, often with enticing offers of reduced or even eliminated debt. However, the perpetrators behind these schemes exploit the lack of awareness and understanding surrounding legitimate forgiveness options.

Scammers often reach out to potential victims through phone calls, emails, or social media advertisements. They may claim to be from a government agency, a reputable loan servicing company, or a nonprofit organization specializing in debt relief. They’ll make enticing promises of immediate and complete student loan forgiveness, regardless of the borrower’s financial situation or eligibility.

To access their supposed services, scammers require upfront fees or request personal financial information. Legitimate student loan forgiveness programs do not charge upfront fees, so this is a significant red flag. They may pose as loan servicers and request sensitive personal and financial information, such as Social Security numbers and bank account details. This information is then used for identity theft or other fraudulent activities.

After collecting fees or personal information, the scammers disappear. Victims are left with the same or even more substantial student loan debt, often facing financial hardship due to the money they lost to the scam.

Legitimate student loan forgiveness programs do not charge upfront fees. If someone requests money upfront before providing assistance, it is likely a scam. Avoid making payments or sharing personal information, especially your Federal Student Aid ID and login information.

To find information about federal student loan forgiveness programs, visit the official U.S. Department of Education website or relevant government agency websites. These sites provide accurate and up-to-date information on legitimate programs, and also provide information about scams.