How Can I Avoid Student Loan Debt Relief Scams
Posted: 07/22/2024
Updated: 07/29/2024
Student loan forgiveness scams are on the rise. New payment relief plans have changed the normal rules surrounding student loans. That’s created confusion.
Scammers thrive in confusion. When their targets don’t have the facts straight, they’re easy prey. Even savvy borrowers might find it hard to tell the difference between fraud and legitimate forgiveness or relief efforts.
The good news is there are ways to identify and protect yourself from student loan forgiveness scams. Below are two lists of “do’s” and “don’ts” provided by the U.S. Department of Education (ED) to help students protect themselves against scammers.
Proactive Steps to Protect Yourself
Find Out Who Supports Your Student Loans
Start by identifying the legit companies and sources of information for your student loans. Federal student loans involve ED and the office of Federal Student Aid (FSA), your student loan servicer, and your school. Many schools also hire companies like Student Connections to provide additional support.
Update Your Contact Info on StudentAid.gov
Log into your FSA account on StudentAid.gov and confirm your contact info is up to date. If you don’t have an FSA ID, you can easily create one.
Update Your Contact Info With Your Loan Servicer
Make sure your loan servicer has your most current contact information. If you don’t know who your servicer is, you can log into StudentAid.gov and see your servicer(s) in your account. If you don’t have an online account, you can create one.
Report Scammers
If you’ve been targeted by scammers, notify the Federal Trade Commission by visiting ftc.gov.
Check the Source
When you receive an email about student loans, check the address it was sent from. Official FSA emails are sent via noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com. If you’re unsure if an email is legit, contact your loan servicer to verify its authenticity.
Rules to Follow When Someone Contacts You
Don’t Pay For Help
You do not need to pay anyone to obtain debt relief or advice. There are legitimate, FREE ways to lower payments, pause payments, or apply for loan forgiveness. If you are having difficulty paying for your student loans, contact your loan servicer. They can help you for free.
Keep Your FSA Login Info Secret
Never reveal your FSA ID, account information or password to anyone who contacts you. The Department of Education and your federal student loan servicer will never call or email you asking for this information.
Never Give Out Personal Info
Don’t give private personal or financial information to an unfamiliar caller. For example, you should never be asked to provide debit/credit card information or your full SSN.
NOTE: Your loan servicer and legit companies like Student Connections, may ask for information to verify your identity before sharing any details about your account. When in doubt, hang up and call your school or student loan servicer to verify the authenticity of a company before you work with them.
Learn the Risks Before You Refinance
Don’t refinance your federal student loans unless you know the risks. If you refinance federal student loans that are eligible for debt relief into a private loan, you will lose out on benefits like flexible repayment plans for federal loans.
TL;DR – Key Points and Takeaways
- You never have to pay to apply for or receive student loan relief from FSA.
- Official FSA emails are sent via noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com.
- No one should ever ask for your account username or password.
- If you are unsure if an offer is legitimate, contact your loan servicer to verify.
- You can report scam attempts to the Federal Trade Commission by calling 1-877-382-4357 or visit reportfraud.ftc.gov.
Additional Support and Resources
The best way to protect yourself from fraud is to stay informed. If you’re aware of the facts, you’ll be a harder target for scammers.
To keep up with the latest news on debt relief for federal student loans, visit StudentAid.gov/loancancellation. You can also sign up to have important student loan updates sent directly to you.
If you have questions, contact your loan servicer or Student Connections for free. We work on behalf of schools to provide federal student loan repayment counseling. This service is paid for by the schools and costs you nothing. We can be reached at (866) 311-9450, Monday through Friday, 9:00 a.m. to 6:00 p.m. ET.