The pause on student loan debt is coming to an end, and scammers know it.
The Better Business Bureau is already getting reports of scams related to student loan repayment.
The common theme is the new 2023 guidelines.
How the scam works
You receive an email, letter, or phone call saying that you qualify for student loan consolidation, a payment reduction scheme, or something similar.
The con artist may even claim to be from the Federal Student Aid Department.
If you respond, the scammer will want personal information from you in order to authenticate your identity or check your eligibility. This information could include your SSN, name, address, and even your fsa.gov login credentials.
The scammer will then propose a way to lower your loan repayment.
If you accept, you may end yourself paying a third party for months or even years in vain.
Even if you do not pay, exposing personal information puts you at danger of identity theft.
Avoid getting scammed
Here’s how to protect yourself:
- Know the terms of your student loan and the relief program before acting. Do your research before sharing personal information.
- Never pay money for a free government program. Scammers often trick victims into paying for free government programs.
- Be cautious of out-of-the-blue calls, emails, or text messages claiming to be from the government. Generally, the government will not contact you using these methods unless you grant permission.