There has been a recent increase in scams related to student loan forgiveness, especially now that federal student loan payments have resumed.One To protect yourself and your money, be aware of these common signs of fake student debt relief.
Signs You’re the Victim of a Student Loan Forgiveness Scam
They Reached Out to You First
One clear sign of a student loan forgiveness scam is when you receive unexpected messages or calls without asking for them. Scammers frequently contact people through email, phone, or text messages, pretending to offer student loan forgiveness. They may ask for personal information or payment.
Forgiveness programs usually don’t contact people unless they have been contacted first. If you have received a message from a company that you did not ask for, and they are claiming to offer forgiveness, it is possible that you are dealing with a scammer.
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Demand for Sensitive Personal Information
If someone contacts you and requests your social security number, bank details, date of birth, or any other information that could make you susceptible to identity theft, take a moment to pause and consider before providing any answers.
It is common to provide personal information to a legitimate company when applying for student loan refinancing or contacting your student loan servicer about your account. However, you should never be required to provide that information just to get information about a company’s services, especially if they contacted you.
Demand to Pay for Student Loan Forgiveness
The U.S. Department of Education will not ask you to pay for student loan forgiveness or for assistance with your account. If someone asks you to pay a processing fee or upfront fee in order to assist you with obtaining forgiveness or accessing federal student aid, this is a warning sign.
If you need help, you can find a lot of information at StudentAid.gov or by contacting your federal loan servicer. If you call Earnest’s Client Happiness Team, they can assist you in finding resources to evaluate your options. And don’t worry, they won’t charge you for that advice.
Also Read: 6 Florida States Sue Biden Over Student Loan Forgiveness Plan
They Guaranteed Immediate Student Loan Forgiveness
Legitimate student loan forgiveness programs do not provide immediate or complete forgiveness without any conditions. There are many ways to have your loans forgiven, but none of them involve instantly erasing your debt without any conditions.
If a program claims to get rid of all your student loan debt fast or without any effort from you, it’s likely a scam. Some programs that claim to offer immediate forgiveness may ask you to pay upfront, while others may use the promise of forgiveness to collect your personal information and potentially engage in fraudulent activities. Be careful not to be tricked by this common scam.
They Impersonated the Federal Government
CBS News reported that in September, scammers made 350,000 automated phone calls to Americans regarding student loan forgiveness in just two weeks. The robocalls often claim to be about your student loans and might offer options for canceling or reducing your payments.
There is a robocall that is made to student loan borrowers. In this call, they mention the “United Services Student Loan Department.” This name might make you think it is a government agency if you’re not careful.
StudentAid.gov suggests that you should only work with the U.S. Department of Education, Federal Student Aid, and your loan servicer when exploring forgiveness options. The message will come from the email address if they contact you.
Demand for Power of Attorney
If a company sends you a contract requesting power of attorney, it is a clear indication that they are a fraudster involved in a scam related to student loan debt relief. You can enroll in income-driven repayment plans or seek debt forgiveness without needing someone else to do it for you.
When you give someone else the authority to make financial decisions on your behalf, it can put you at risk of accumulating more debt if they take out fraudulent loans in your name. Cleaning up the mess can be more difficult if you have legally granted them that right.
They Pressured You to Act Fast
The federal government and your loan servicer will never use aggressive tactics to try to make you make a decision. If someone is pressuring you to quickly sign up for their services, it’s best to walk away. This could be a sign that something is wrong.
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