Student Loan Scams: How To Protect Yourself

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Trying to repay a student loan can be a daunting task.

So when a phone call, email, or letter suddenly comes up for help, it can look like a miracle coveted. Student debt relief proposals may seem true, and state officials often warn them that they are.

The state bank and securities bureau and the Department of Education recently warned that student loan fraud will increase.

Sector officials say the economic struggle caused by the COVID-19 pandemic has created a ripe environment for scammers to take advantage of those struggling to repay their debts.

“As the pandemic continues, many consumers are looking for financial relief,” said Richard Vague, director of banking and securities. “Like other scams, these perpetrators take advantage of people’s hopes and weaknesses and create ideal scenarios to exploit them.”

Scammers are becoming aware of recent student debt – public calls for debt relief, pandemic loan suspensions – and the changing state of student debt to mislead people. Confusion.

Authorities said anyone contacted about student loan aid must make sure it is legal before providing personal information. Here are some tips to help distinguish between fraud and reality:

  • Be skeptical. Fraudsters often illegally obtain student loan information. Just because someone has information about your loan doesn’t mean they should be trusted.
  • I am investigating the company. Many fraudulent “businesses” don’t really exist, so check the effectiveness of the company you are contacting.
  • Do a due diligence. Check what programs are on offer. Some scams offer to enroll in programs like the CARES Act Loan Forgiveness and the Biden Forgiveness Program, but neither of them exist.
  • I’m checking my email address. Make sure the student loan email is from your .gov email address.
  • Knowing what a legitimate program wants and doesn’t ask. Please be careful before disclosing sensitive or financial information such as social security numbers, credit information, or banking information. If in doubt, hang up and call the service technician directly.
  • Take a break before performing the action. Check your communications or phone with the servicer before taking action.

Officials say anyone who feels they are a victim of student loan scams should do the following:

  • Close your account or stop paying. If you give your bank account or credit card information to a fraudster, please contact your bank or credit card company immediately to close your account or stop paying.
  • Warn the service technician. If you suspect that you are a victim of student loan fraud, please call your servicer so they can monitor your account.
  • Monitor your credit report. Look for any suspicious activity. Fraudsters don’t always use your information right away. It could take weeks, months, or even years for your data to be used in fraudulent activities. You can also consider freezing credits with great care.
  • Report the scam. You can report student loan-related fraud to the Federal Trade Commission. reportfraud.ftc.gov/#/ Or the Pennsylvania Attorney General Attorneygeneral.gov/submit-a-comlaint..

For more information or to file a complaint about financial transactions, the company or product should call the Banking Securities Office (800-722-2657).

Student Loan Scams: How To Protect Yourself

Student Loan Scams: How To Protect Yourself

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