Student Loan Forgiveness Scams to Watch Out for
With so many advertisements and websites claiming to offer student loan forgiveness, it can be difficult for even the savviest borrowers to discern between legitimate and fake offers.
To familiarize yourself with the signs, you should understand what phishing email is. Phishing emails are malicious messages disguised to appear authentic, and often resemble messages from a legitimate company or individual. They generally contain links that lead to suspicious web pages or malicious documents that criminals can use to steal sensitive data or infect your devices with viruses.
A few common red flags include offers to pay off your student loan debt without proof of your income and assets, strangers suddenly offering to cancel your student loan debt in exchange for an up-front fee, or requests that you bring cash or prepaid cards directly to them.
The issue is so prevalent that the FBI recently warned about potential fraud schemes targeting people seeking Federal student loan forgiveness.
Here are student loan forgiveness scams you should watch out for:
Promises of Immediate Relief
You should be wary of any company that promises immediate relief from your student loan debt.
While this might sound like a dream come true, remember that legitimate debt reduction methods usually take time to finalize and approve.
If a company claims they can get you immediate relief and fast results, chances are they’re not being honest with you.
Requests for Upfront Fees
Legitimate companies that assist with student loan forgiveness won’t generally ask you for an upfront fee before helping in some way.
In fact, many companies only charge fees if they successfully get your loans forgiven or reduced.
Make sure you research and thoroughly vet any company before handing over any money—if the deal sounds too good to be true, it probably is!
Wildly Unrealistic Promises
While it’s possible to get help with reducing or eliminating your student loan burden, no company has the power or influence to guarantee total forgiveness without making significant efforts on your part first.
This may include enrolling in an income-driven repayment plan or applying for public service loan forgiveness (PSLF).
Again, do your research and make sure any claims seem reasonable before moving forward with anything.
How do Cybercriminals Deploy Student Loan Forgiveness Scams?
Cybercriminals often use phishing emails, websites, phone calls, or text messages to deploy student loan forgiveness scams.
These scammers essentially aim to convince those with a large amount of student loan debt, who are desperate for help, to purchase their services. Unfortunately, signing up for these half-baked schemes can end up costing victims a lot more.
These bogus messages often ask consumers to provide personal information like bank accounts and Social Security numbers, allowing cybercriminals to access the victim’s financial information and steal their hard-earned money.
It’s important to remember that the U.S. Department of Education won’t reach out unsuspectingly via email, text message, or phone call and ask you to pay upfront fees for loan forgiveness options.
Bottom Line
Unfortunately, there are a lot of student loan forgiveness scams out there.
Be on the lookout for companies making grandiose promises or asking for upfront fees—these are often major red flags that you’re dealing with a scam artist.
Do your research and only work with reputable organizations to ensure you get the best possible help with your student loans.
You can contact your state Attorney General’s office or the Federal Trade Commission if you think you may have been the victim of a scam. You can also report it to the FBI Internet Crime Complaint Center as quickly as possible.
