How to Avoid Student Loan Scams
ALBANY, NY (NEWS10) – Although the Department of Education (DOE) has extended the student loan payment break until August 3. A broader federal student debt cancellation program for all borrowers has not been announced. The DOE warns that student debt relief scammers are already on the rise.
According to the DOE, the scammers promise a loan forgiveness program that most people will not qualify for. They might say they’ll erase your loans by disputing them, but in fact, they can’t get you into a qualifying forgiveness program that they’ve rated.
To avoid a student loan forgiveness scam, know this:
- There are specific federal loan relief programs, including Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness Programsand even a utility loan forgiveness limited derogation program currently underway with a deadline of October 31.
- Do not share your FSA ID. Scammers will claim that they need your FSA ID to help you and can use this information to gain access to your account and steal your identity.
- You don’t need to pay for help. There’s nothing a company can do that you can’t do yourself for free.
If you have any questions about eligibility for federal loan relief or how you will repay them after the break ends in August, contact your loan officer or the Ministry of Education directly. If there is eventually a broader federal plan to cancel student debt, official word will come only from the DOE, not random calls, texts, emails, or social media posts.