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Beware of Student Loan Scams

Be cautious of any phone calls, emails, letters or texts offering relief from your Federal Student Loan debt. Voicemails left by companies include statements such as “Your Federal Student loans are eligible for some new programs in 2019 that you may not be aware of” and “You have a notification on your Federal Student Loan that you are not in the lowest possible repayment option. This could be costing you thousands of dollars annually and tens of thousands over the course of the loan.”

These companies offering student loan debt relief are often just fraudsters after your money. Below are some signs to look out for:

  • They require you to pay up-front or monthly fees for help.
  • They promise immediate and total loan forgiveness or cancellation.
  • They ask for your FSA ID.
  • They ask you to sign and submit a third-party authorization form or power of attorney.
  • They claim their offer is limited and encourage you to act immediately.

These are just some of the signs that can be indicative of a student loan scam. We advise you to visit the Department of Education’s website for more information on these student loan scams. Please visit https://studentaid.ed.gov/sa/repay-loans/avoiding-loan-scams.

Last updated 2/13/2020 5:03 AM