FRAUDCOLLEGEBUDGETING

Avoiding Student Loan Forgiveness Scams

Student loans are a major concern for a lot of students who have recently graduated from college. Many students are looking for ways their student loans may be forgiven through various federal student loan repayment and forgiveness programs, including the Public Service Loan Forgiveness (PSLF) program and the Saving on a Valuable Education (SAVE) plan. The balance of your student loans can seem daunting, and you may feel the need to get them paid off as quickly as possible.

Fraudsters prey on students looking for student loan forgiveness by attempting to obtain sensitive personal information, passwords and payment through a variety of tactics. They often target students by saying that a deadline for forgiveness is approaching, and they need the information immediately. Here are some indicators that may mean a fraudster is seeking your information through a loan forgiveness scam:

• Asking for payment: Remember there is no scenario where you will be asked for payment by a credible loan servicer to apply for student loan forgiveness.

• Login information: Fraudsters often ask for your login information. Never provide your username and password to anyone. Only use your login information to access your student loan accounts and submit applications for repayment plans and potential student loan forgiveness.

• Typos: A trend fraudsters have in common is their communication has typos. Make sure to read any information that you have received thoroughly.

• Unofficial addresses: Fraudsters typically use similar-looking symbols, names, logos and seals to those of credible companies. Usually there are only slight differences between a real name or logo and a fraudster’s look-alike name or logo. This makes the fraudster seem more legitimate.

• Urgency: Fraudsters usually urge you to submit your information as quickly as possible so they can gain access to your personal information.

To avoid these types of scams, it’s important to know what credible sources exist. Read on to learn more about the legitimate programs and loan servicers that are available.

Federal student loan repayment and forgiveness programs:

Federal Direct Consolidation Loan Program

Public Service Loan Forgiveness

Teacher Loan Forgiveness

Income Driven Repayment Plan

SAVE Plan

Federal Loan Servicers

• Edfinancial

• MOHELA

• Aidvantage

• Nelnet

• ECSI

• Default Resolution Group

• CRI

Your loan servicer houses your student loans and shows the balance you owe. They also collect and process any payments that you submit. In addition, they provide guidance on which repayment plan is right for you.

Think you have been scammed?

• Contact your federal loan servicer and make sure no changes have been made.

• Contact your financial institution or credit card company to stop all payments.

• Submit complaints to the Federal Student Aid website, FTC and Consumer Financial Protection Bureau.

• Change your password for any affected accounts.

Finally, it’s important to be proactive when it comes to fraud attempts. If you think you have been scammed, take the necessary actions to keep your personal information safe!

Sources:

https://studentaid.gov/articles/avoid-student-loan-forgiveness-scams/