The time is right for con artists to take advantage of the uncertainty and confusion around the upcoming start of college loan repayments in October.
Student loan-related robocalls have increased alarmingly recently, according to Transaction Network Services (TNS), which records robocall frauds across different carrier networks.
Over 350,000 of these fake calls have been placed just in the last two weeks; this number approximately equals the figure from the nine weeks before.
This is How Scammers Operate
These shrewd con artists frequently get in touch with victims by pretending to be concerned about their student debt situation.
They dangle tempting incentives, such as lower or postponed monthly payments or, astonishingly, a guarantee of total loan forgiveness. Some boldly pose as Department of Education employees, while others assume fictitious official-sounding guises like student services.
The Federal Trade Commission issues a warning, saying that the first red flag that something is a scam is if the person wants to charge you upfront before they’ve done anything. And only a con artist will ever promise you immediate loan forgiveness.
IdentityIQ, a firm that guards against identity theft, uncovers yet another fraud involving con artists pretending to be clients’ new student loan servicers.
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What Actions Should You Take?
Fortunately, the Federal Trade Commission makes it clear that borrowers do not need to pay for help managing their student loans.
Do not hesitate to contact the FTC if you believe you have been the victim of a scam.
Unless you are assured of the organization’s legitimacy, sharing your credit card or bank account information should raise a red signal.
Giving out such information carelessly could put you at danger for identity theft. Remember that a lot of websites that charge for FAFSA help are not connected to the US. Education Department.
You may fill out the official FAFSA form for free at fafsa.gov, and assistance is available from the Federal Student Aid Information Center or the financial aid office at your college.
For services that borrowers can handle for free by contacting their loan servicer, many student loan debt reduction organizations charge fees.
Reduced monthly payments, modified repayment schedules, loan consolidation, and research into loan forgiveness or other programs are a few of the services offered. Apply for federal student aid on the official website to prevent identity theft, and don’t give out personal information until you initiate contact.
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Source: Marca
