The FTC is Warning That Scammers Are Targeting People With Student Loans With Fake Forgiveness Offers


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Last week, the Supreme Court ruled against the student loan forgiveness plan and payments will resume this October. As per con artist tradition, scammers are taking advantage of a confusing situation and targeting borrowers through fake loan forgiveness offers.

CNBC reports scammers often “take advantage of confusion around big news like this.”

Scammers will use any tactic possible to con people, so watch out for suspicious robocalls, emails, letters, and texts especially if the promise sounds too good to be true.

The Federal Trade Commission offers some helpful advice to identify and avoid scammers:

  • Never pay for help with your student loans – There’s nothing a company can do that you can’t do yourself for free.
  • Don’t give away your FSA ID login information – Anyone who says they need it to help you is a scammer. If you share it, the scammer can cut off contact between you and your servicer – and even steal your identity.
  • Don’t trust anyone who contacts you promising debt relief or loan forgiveness, even if they say they’re affiliated with the Department of Education – Scammers try to look real, with official-looking names, seals, and logos. They promise special access to repayment plans or forgiveness options – which don’t exist. If you’re tempted, slow down, hang up, and log into your student loan account to review your options.

If you’re concerned about paying your student loans, call your loan provider to discuss options. They can help you estimate your monthly payment and navigate repayment plans. Your lender may be able to put you in contact with official programs designed to find ways to decrease monthly payments or partially forgive some of the debt, as outlined by Forbes.

Have you already been contacted by scammers? The FTC encourages everyone to report fraud and suspicious activity so it can take further measures to catch scammers.

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