With the recent announcement from the government of Student Loan Forgiveness, there is also an increase in scams. While these scams come in many different shapes and sizes, their goal is all the same - to take advantage of you! Here's how to spot Student Loan Forgiveness scams so you don't fall victim.
You're asked to pay fees or upfront costs
The most common student loan forgiveness scam is fraudsters asking potential victims to pay a fee to expedite the process and get their money quicker. Please don't fall for it! We assure you there are no upfront costs or fees to receive student loan forgiveness. Fraudsters know that those with student loans may be excited to receive forgiveness and will do what they can to get it faster. Fraudsters will take full advantage of that. Don't let the victim be you.
You're promised Student Loan Forgiveness immediately
Due to the number of loans and the nature of the process, student loans cannot be canceled or forgiven immediately. If you are contacted by someone claiming that they can cancel your loans right away, don't take them up on it!
Most government loan forgiveness programs will require specific qualifications and additional information to continue forward. If someone claiming to be the government contacts you offering to cancel or forgive your loans immediately, hang up the phone and don't reply.
You're asked to give your personal and confidential information
Fraudsters also could email, text, or call you asking for your banking and other confidential information. They'll try to convince you that this will help them forgive your loan(s) quicker and get money to you faster. Relinquishing your confidential information gives the fraudster the green light to take advantage of you and your hard-earned money.
What do you do if you think you fell for a scam?
Contact your financial institution or credit card company
If you paid a fee or let the fraudster in on your banking information, it's not too late. Call your financial institution or credit card issuer immediately and tell them what happened. They can turn off your debit or credit cards (if you haven't done so already) and issue you a new card to ensure no more money is taken from you.
Additionally, they have the tools to put fraud alerts on your account and block any suspicious charges that come your way.
Report the scam
If you've been scammed, head to the Federal Student Aid website to report it. Doing so could help you get your money back, bring awareness to the scam, and help prevent others from being scammed.
Bottom Line
If you get a bad feeling about a call, text, or email, it's for a good reason, and trust your gut!
Since the beginning of the COVID-19 pandemic, there has been an abundance of information being shared from many different sources regarding student loans, repayment, and loan forgiveness. We encourage you to be mindful of the sources you receive your information from and only use reputable, trusted ones. The Federal Student Aid website is the best place to get the most up-to-date information about student loan forgiveness and its process.
