Davidson News

Davidson News

Watch Out for Student Loan Scams, Protect Yourself from Debt Relief Fraud

Beware of student loan scams, as scammers exploit the resumption of federal student loan payments in October, making fraudulent promises of loan forgiveness or lower payments while posing as Department of Education representatives through over 350,000 robocalls in recent weeks.photo(Istockphoto).

Navigating the Resumption of Student Loan Payments Amid Rising Scam Concerns

According to CNN, as federal student loan payments are set to resume in October, there’s growing concern among borrowers, many of whom haven’t made payments since 2020, and student loan scams are capitalizing on this vulnerability with an influx of student loan relief scams.These fraudulent student loan scams promise a loan forgiveness or lower monthly payments and even impersonate representatives of the Department of Education, with over 350,000 robocalls reported in recent weeks.

It’s essential to recognize the signs of a student loan scams, especially considering that President Biden’s broad student debt forgiveness plan was denied by the Supreme Court. If the President can’t forgive your debt, neither can any random company or individual.

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Avoiding Student Loan Scams and Protecting Your Finances and Future

Legitimate repayment plan options are available through loan services that don’t require upfront payments or sensitive information, so if you receive a call promising reduced payments for a fee related to student loan scams, hang up, even if they claim to represent the Department of Education. Similarly, be cautious with email or text messages related to student loan scams and avoid clicking on any suspicious links.

Despite the prevalence of student loan scams, there are genuine options to lower loan payments, but it’s essential to initiate contact with your loan servicer rather than responding to unsolicited offers related to student loan scams.

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