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  • Geebo 8:00 am on April 11, 2024 Permalink | Reply
    Tags: debt forgiveness, , ,   

    After White House announcement, student loan forgiveness scams are on the rise 

    After White House announcement, student loan forgiveness scams are on the rise

    By Greg Collier

    In the realm of student loans and debt relief, hope can often be overshadowed by the looming burden of repayment. So, when news breaks of potential relief programs, it’s no wonder that many eagerly await updates. However, amidst this anticipation, lurks another group who is tuned into student loan debt forgiveness news, scammers.

    Recently, the White House announced plans for potential student debt relief for millions of borrowers. While this news offers a glimmer of hope, it also opens the door for scammers seeking to prey on vulnerable individuals. For example, fraudulent emails have emerged offering debt forgiveness under the guise of new guidelines.

    Some have received emails purportedly from the “Student-Loan Debt Department,” informing them of eligibility for forgiveness. Alarmingly, the emails state that their cases would be closed within a day if they didn’t respond promptly. Upon closer examination, several red flags emerged, indicating a scam in progress.

    First and foremost, the term “Student-Loan Debt Department” raised suspicion. A quick search revealed its absence from official government channels, with accusations labeling it a scam.

    Further investigation exposed other telltale signs of a scam. The email originated from suspicious addresses, lacking affiliation with the U.S. Department of Education or its authorized partners. Additionally, the inclusion of a mailing address in Albuquerque, NM, raised eyebrows, as the Department of Education has no presence there.

    Typos and grammatical errors within the email also hinted at its fraudulent nature. The misuse of phrases like “Student-Loan Debt Department” and “StudentLoans” instead of proper terms underscored the scam’s amateurish nature. Moreover, the email’s urgent tone, pressuring recipients to act swiftly, mirrored common tactics employed by scammers.

    This also disregards the fact that the White House has merely announced its intentions regarding student debt relief. There is no official plan in place, let alone one that has been implemented or finalized.

    Legitimate communications regarding student loan forgiveness will typically come from recognized addresses associated with government agencies or authorized partners. When in doubt, verify the information provided in the email through official channels. Government websites or loan servicers can confirm the legitimacy of forgiveness programs and communications.

    Also, please keep in mind, legitimate avenues for debt relief do not require payment. Avoid falling prey to scams that demand fees or payments for accessing forgiveness programs.

     

  • Geebo 8:00 am on March 20, 2024 Permalink | Reply
    Tags: debt forgiveness, , , ,   

    FTC refunds millions to student loan scam victims 

    FTC refunds millions to student loan scam victims

    By Greg Collier

    When student loans weigh heavily on many, news of relief is often met with both hope and skepticism. Unfortunately, for over 27,000 borrowers, hope turned into despair as they fell prey to a scam that promised relief but delivered only financial ruin. The Federal Trade Commission (FTC) recently announced that it’s sending over $4.1 million in refunds to student loan borrowers who were deceived by scammers.

    The perpetrators of this deceitful scheme found themselves at the center of an FTC complaint filed in 2019. The scam was as cunning as it was heartless. They promised to lower monthly student loan payments and offered to take over loan servicing, all while siphoning off hundreds to thousands of dollars in illegal upfront fees from unsuspecting borrowers.

    Instead of easing the financial burden, these scammers exacerbated it. The FTC revealed that only a fraction of the payments made by borrowers was actually applied to their loans, if any at all. The rest was pocketed by the fraudulent operators, leaving borrowers not only out of pocket but deeper in debt.

    As anticipated, it’s sadly predictable that scammers will also target those receiving these refunds. Scammers are often quick to exploit the confusion and desperation of borrowers.

    The warning signs are clear. Unsolicited calls or emails pressuring borrowers to ‘act immediately,’ promises of being ‘flagged for forgiveness,’ or programs claiming to be ‘first come, first served’ should all raise red flags. In an era where information is abundant, but trust is scarce, borrowers must exercise caution and diligence.

    The Education Department’s website stands as a beacon of reliable guidance amidst the sea of misinformation. Detailed resources on federal student loan forgiveness programs offer borrowers a roadmap to navigating the complex terrain of student loan relief.

     

  • Geebo 8:00 am on October 3, 2023 Permalink | Reply
    Tags: , debt forgiveness, , ,   

    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.

     

  • Geebo 8:00 am on July 3, 2023 Permalink | Reply
    Tags: , debt forgiveness, , ,   

    If it’s in the news, there’s a scam for it 

    By Greg Collier

    One of our well-used adages about scammers is they may be some of the most informed people on the planet. If there is a major news story, there will be scammers looking to take advantage of it. Typically, we see this with natural disasters such as hurricanes and the like. However, the news story can also be something more socioeconomic that’s a call to action for scammers.

    For example, student loans have regularly been in the news for the past few years. We all know why student loans have been in the news, and we’re going to gloss over those details to try to prevent this from becoming a political discussion. And as we all also know, student loans garnered a large amount of the headlines this past week.

    This has caused not only the Attorney General’s Office, but the Federal Communications Commission (FCC) to issue a warning about student loan scammers. Both offices are warning consumers, scammers will more than likely start sending out texts, emails, and robocalls offering some kind of student debt relief.

    These scammers tend to use a nebulous name of an organization that doesn’t exist. They’ll often use generic names like ‘The Student Loan Forgiveness Center’. However, the scammers may have some of your identifying information to make the scam seem more authentic.

    In most cases, the scammers are trying to get you to pay an ‘application fee’ while they promise debt relief that will never come. Once a victim makes a payment to the scammers, they’ll continue to hound the victim for more payments, usually under the guise of having to navigate government red tape.

    Despite, the recent news, there are still student debt relief programs; however, they are only available through the government. Please keep in mind, the government is not going to call you to start the debt relief process. You have to reach out to them first.

    If you have more concerns or questions, you can read more about student debt relief scams at the Federal Student Aid website.

     

  • Geebo 8:00 am on November 1, 2022 Permalink | Reply
    Tags: , debt forgiveness, , ,   

    Student debt scammers already have your info 

    Student debt scammers already have your info

    By Greg Collier

    Ever since the White House announced their plan to forgive a large amount of student debt, there have been numerous warnings about student debt forgiveness scammers. Everyone from the Better Business Bureau to the Federal Trade Commission and even the Office of the President have issued these warnings. Unfortunately, these warnings have not stopped the scammers. They’re still out there in full force, and now seemed to be armed with even more information about you than before.

    According to a report from the BBB, student debt scammers have more of your personal information than ever. The scammers are using this information about their victims to make their scam seem more legitimate. In many scams, the scammers will call people at random and hope they’re a fit for their scheme. But now, the scammers are specifically targeting people they know have student loan debt.

    Potential victims have been receiving calls where the scammers know their email addresses, the schools they attended, and the last four digits of their Social security number. In some instances, the scammers even knew the victim’s Federal Student Aid account information. It’s unknown where the scammers are getting this information, but typically, this information is gained when some service the victim has used has had a data breach.

    In this latest incarnation of the scam, scammers are promising they can relieve more debt than the government program is promising. Victims will be asked for payment by the scammers to supposedly start the forgiveness process, but in reality, they’re just after the victim’s money. Some victims have been asked to pay in multiple monthly payments.

    Again, the best way to prevent yourself from falling victim to this scam is to remember that the government is not going to call you to start the debt forgiveness process. You have to reach out to them. Also, you do not have to pay any money to initiate the process. No one can get you more debt forgiven for more money.

    If you have more concerns or questions, you can read more about student debt forgiveness scams at the Federal Student Aid website.

     

  • Geebo 8:00 am on October 20, 2022 Permalink | Reply
    Tags: debt forgiveness, , , ,   

    Now is really the time to look out for student debt scams 

    By Greg Collier

    Ever since the government announced its student debt forgiveness program, we’ve been warning those eligible for the program to be on the lookout for scammers. This past Monday, it was announced that the application process is finally open. Along with that announcement, both The White House and the Federal Trade Commission have issued warnings about student debt forgiveness scammers and how to try to avoid them. We’re going to go over some of the warning signs so hopefully those who need relief the most won’t fall deeper into debt.

    The first thing to keep in mind is that the program is free. Scammers will either tell you that there’s a charge for the application or that they can fast track your application for a fee. Neither of these things are true.

    Another red flag is if someone approaches you about applying for the program. If you receive a voicemail or robocall from someone claiming to be from an organization with a generic name like ‘the Biden student loan forgiveness program’, they’re scammers. You have to apply first at the Federal Student Aid website at StudentAid.gov. Any form of communication that approaches you before you apply is probably trying to steal your personal and financial information.

    Scammers like to prey on confusion, and the government isn’t exactly helping themselves in that department. After you apply for the program, you may receive emails from the following government email addresses. Those include noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com. Carefully check the email addresses on the emails you might receive. Scammers will try to use similar looking addresses to fool you into divulging personal information.

    Lastly, the application process does not ask you to upload any financial documents or give any banking information. While some applicants may be asked for financial records later on in the process, they will not be asked for them while filling out the application. You will also not be asked for your Federal Student Aid number.

    You can read more about student debt forgiveness scams at the Federal Student Aid website.

     

  • Geebo 8:00 am on September 12, 2022 Permalink | Reply
    Tags: , debt forgiveness, , ,   

    Student debt scammers now using robocalls 

    Student debt scammers now using robocalls

    By Greg Collier

    Once again, the scammers have wasted no time in trying to fleece people who may be eligible for the government’s student debt forgiveness program. In this latest iteration of the scam, scammers are using robocalls to try to find victims. It’s being reported that in the Indianapolis area, residents are receiving phone calls and voicemails about student debt relief.

    One Indiana resident says they received a voicemail that told them they were pre-qualified for student loan forgiveness, with the possibility of having their entire loan discharged. The resident was told to act fast because their status may expire soon. The caller even left their name.

    When the resident called the number from the voice mail, he asked for the person who left the message. He was told that person worked in marketing. The representative then asked her if he had any questions about the program. He asked who they were, and he was given a generic bank name that is used by several different banks across the country. When he asked if there was a charge for the bank’s assistance, he was told there could be fees.

    However, the scammers had called the wrong person. Not only did the Indianapolis resident not have any student loans, but he’s also the news director for a local station. When he told the representative it’s free to apply for the government program, they hung up.

    Scammers use robocalls to cast the widest net possible to try to find just a handful of victims. They don’t actually know whether someone they call has student debt or not.

    As we and others have been warning since these scams started, anyone calling you from out of the blue about student loan forgiveness is probably a scammer. When the application process starts next month, the government will not reach out to you. The forgiveness process will not be automatically applied to your student debt. Anyone who is eligible will need to apply on their own.

    If you have any further questions about the student debt relief program, you can go to the Frequently Asked Questions (FAQ) section on the Federal Government’s Student Aid website. They also have a section about scams.

     

  • Geebo 8:00 am on September 6, 2022 Permalink | Reply
    Tags: , debt forgiveness, , , ,   

    Student loan forgiveness scams have begun 

    Student loan forgiveness scams have begun

    By Greg Collier

    Around this time last week, we posted a warning about how scammers were more than likely looking to take advantage of the new student debt forgiveness program that was recently issued by the government. Well, the scammers didn’t wait long, as we already have reports of scammers trying to take advantage of the confusion surrounding the new plan.

    According to the Better Business Bureau, they’ve already begun receiving complaints about student loan scammers. In one instance of the scam, scammers are leaving voicemails with their potential victims, identifying themselves with generic names like ‘the Biden student loan forgiveness program’. If someone were to call the number back, the person on the other line would start requesting personal and financial information. This would no doubt lead to instances of identity theft.

    In another version of the scam, scammers posing as the loan forgiveness program will try to have victims pay a fee. The scammers might even try to get victims to direct their loan payments to the scammers’ bank account.

    There are two things to keep in mind with these scams. The first one is that the government is not going to reach out to you to see if you qualify for student debt forgiveness. It will also not be applied to your debt automatically. You need to reach out to the government to see if you qualify. The other thing to keep in mind, is that there is no fee to apply for the debt forgiveness. Anyone who asks you for a fee or payment is trying to scam you.

    As we said previously, the best way to protect yourself is to not accept loan forgiveness offers from strangers. Whether it’s over the phone, through social media, or any other form of communication, if they approach you first, they are not from the government. And again, you can also better protect yourself by not only learning if you qualify for the new program, but how the process works. CNBC has a great article on eligibility for the program, but you can also go to the Federal Government’s Student Aid website for further information.

     

  • Geebo 8:00 am on August 29, 2022 Permalink | Reply
    Tags: , debt forgiveness, , , ,   

    Are there more student loan forgiveness scams on the horizon? 

    Are there more student loan forgiveness scams on the horizon?

    By Greg Collier

    Student loan forgiveness scams are nothing new. However, experts are warning that we’re about to see a drastic increase in them. This is because the White House recently announced a debt forgiveness plan that will assist many in reducing or eliminating their student loan debt. But with any form of government assistance comes two things, confusion and red tape. It’s the confusion that will bring all manner of scammers out of the shadows.

    In the past, student debt scammers have texted, emailed, and called their victims offering to help reduce the remainder of the victim’s loan. Some scammers have even taken to social media messaging to try to lure victims into a false sense of security. Legitimate debt forgiveness programs will not contact you. You will have to contact them.

    There are a number of scams that these con artists can pull on a victim. There’s the advance fee scam, where the scammers will ask for an upfront payment before assisting someone. In reality, they’re just after the payment. If you qualify for the new student loan relief program, there is no fee associated with it. If someone promises they can help you get the government’s debt relief and asks for a fee, they’re trying to steal your money.

    Then there’s identity theft. Some scammers will be out to get your personal and financial information rather than a payment. It’s especially important not to give your Federal Student Aid ID to anyone who solicits you with an offer of assistance. This information can be used to steal your identity and could end up adding more debt than just your student loans.

    One of the best ways to protect yourself from these scams is to not accept offers from random strangers on the internet. You can also better protect yourself by not only learning if you qualify for the new program, but how the process works as well. CNBC has a great article on eligibility for the program, but you can also go to the Federal Government’s Student Aid website for further information.

     

  • Geebo 9:00 am on February 22, 2022 Permalink | Reply
    Tags: , debt forgiveness, , , ,   

    Scam Round Up: Student loan forgiveness scam and more 

    Scam Round Up: Student loan forgiveness scam and more

    By Greg Collier

    Today, we’re brining you three scams that we’ve discussed in the past, but are worth discussing again as a reminder.

    ***

    Student loan payments were temporarily suspended by the government and were expected to resume this past January 31st. However, the government extended the deadline once again to the beginning of May. This entire time, scammers have been out in full force, trying to pull the wool over the eyes of those who are looking for student debt relief. Scammers are calling those with student debt promising loan forgiveness. Some scammers are even trying to disguise themselves as government associated entities. These scammers are mainly out to steal your personal and financial information. Scammers will also try to pressure you into giving your information by saying that their offer is only available for a short time. Keep in mind that no legitimate agency that can offer debt forgiveness is going to solicit you.

    ***

    With the employment culture shifting more to working from home, more scams are trying to take advantage of any disconnects between employer and employee. Some scammers are finding out where people work and are posing as their bosses. The scammers will send text messages or emails posing as a home worker’s boss and asking them to do certain assignments. Typically, these assignments involve money such as buying gift cards, wiring money, or even changing someone’s direct deposit for their paychecks. If you receive one of these messages, it never hurts to contact your boss directly over the phone before responding to any of the messages.

    ***

    Lastly, we’ve seen reports again about consumers receiving phone calls that threaten to shut off their electricity. In this scam, the scammers will pose as your local power company and tell you that your account is past due, and they’ll terminate your service if you don’t pay immediately. The scammers will then ask for payment in things like gift cards, pre-paid debit cards, or in some cases, will even try to direct you to a Bitcoin ATM. No utility company will ever threaten you with termination of service over the phone. If your account is past due, you would be notified in the mail before service would be shut off.

    ***

    Hopefully, this little refresher course will help you avoid these and other scams in the future.

     

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