Scammers are taking advantage of the fact that more than 44 million Americans will soon have to start making payments again on their student loans following a payment break caused by the pandemic.
Over 350,000 student loan-related robocalls have been reported in just the previous two weeks, according to statistics from Transaction Network Services (TNS).
Student Loan Payments Amidst Scams and Confusion
The need for vigilance and knowledge in the often perplexing realm of student loan payments is underscored by this troubling trend.
There is widespread anxiety and confusion among borrowers as the October beginning of student loan payments follows the 2020 postponement due to a pandemic.
Some borrowers are still determining what to do after the Supreme Court blocked President Biden’s plan to forgive up to $20,000 in college debt per borrower.
John Haraburda, a robocall data analyst at TNS, said it perfectly when he said, “Scammers seize on chaos and confusion.”
Scammers use fraudulent practices to convince borrowers to part up private data or pay in advance for supposedly free services.
Robocall transcripts show a recurring scam in which fraudsters pose as loan servicers and make alluring claims regarding a borrower’s student loan, such as lowering monthly payments, delaying repayment, or guaranteeing complete loan forgiveness.
The Department of Education is a common target for impostors, and others use official-sounding but misleading titles like “student services.”
One robocall transcript, for example, read as follows: “This is United Services Student Loan Department with an urgent call to our clients regarding the new federal program, which now qualifies for complete dismissal and full discharge of all your federal student loans, as well as a refund of monies paid and removal from credit history,” as reported by TNS.
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Protecting Your Student Loans
Many borrowers are unfamiliar with their new loan management organizations because of loan servicer changes made during the pandemic.
According to IdentityIQ, a company that protects from identity theft, con artists exploit this confusion by pretending to be the customers’ new student loan servicers.
The Federal Student Aid Information Center or the borrower’s loan servicer should be contacted to confirm any suspicious calls or emails regarding their student loans.
Borrowers should take extra precautions against fraud by observing the sender’s email or phone conversation for telltale signs of fraud, such as misspelled words or grammatical problems.
The Federal Trade Commission (FTC) has warned students that they should never pay any money upfront for help with their student loans.
“If someone tries to charge you upfront before they’ve done anything, that’s your first clue that this is a scam,” the Federal Trade Commission (FTC) says. “Nobody but a scammer will ever offer you quick loan forgiveness.”
As the US prepares to resume student loan payments, borrowers must be wary of con artists who may try to take advantage of their anxiety and uncertainty about their finances by using increasingly sophisticated methods.
Borrowers can safely navigate the student loan landscape and save more of their hard-earned money by arming themselves with knowledge and being aware of the risks they face.
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