There are a few important notices to watch out for during the student loan payment pause this October. We’ve created some resources to help you keep in touch with your lender and make sure it’s still there when the payments start again.

The “why do i keep getting calls about student loans when i don’t have one” is a question that many people are asking. The answer is that scammers are taking advantage of the student loan payment pause to trick people into giving them their personal information.

Watch out for scams during the student loan payment pause

Borrowers of federal student loans may take advantage of a number of lawful methods to get their debts forgiven. Unfortunately, there are also frauds associated with student debt forgiveness programs. The ambiguity surrounding debt forgiveness might provide fertile ground for con artists. Companies will often make promises that they cannot keep, or ask an upfront price for something that can be done for free online.

The true challenge for borrowers will be identifying between a firm that is offering fair and ethical student loan counseling and one that is attempting to take advantage of naive students.

Should I Refinance My Student Loans? Related: Should I Refinance My Student Loans?

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Is Forgiveness of Student Loans a Scam?

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Millions of students are paying back college loans, and the prospect of having those debts forgiven may be quite enticing. For federal student loan debtors who fulfill the program’s standards, there exist real student loan forgiveness options.

Programs like Public Service Loan Forgiveness and the Teacher Loan Forgiveness Program are examples of this. Depending on your experience and program criteria, there may be various ways to forgive student debts.

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What Is a Scam With Student Loan Forgiveness?

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When a firm makes a promise that they can’t keep, it’s called a student debt forgiveness scam. These promises might seem to be enticing to borrowers hoping to get out of student loan debt fast. Unfortunately, fraudsters may make unrealistic promises, such as fast debt forgiveness, or lure borrowers into providing personal information.

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Scams involving student loans come in a variety of forms.

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Scams involving student loans come in a variety of shapes and sizes. Scams that come in the form of unwanted calls, messages, or emails should be avoided.

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1. Scam Calls Regarding Student Loan Forgiveness

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Pay attentive attention if you get an unsolicited contact requesting for information about your student loans. Some calls may lead to the cancellation of student loan debt. Any call claiming a quick method to pay off your student debts is, in general, a fraud. The United States Department of Education provides real forgiveness programs and options to reduce student loan payments, all of which are available to students at no expense via their loan servicers.

To help you prepare, the Federal Trade Commission (FTC) offers a sample of what these calls can sound like.

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2. Text Scam on Student Loan Forgiveness

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Scammers might also approach student loan debtors through text message. To create a false feeling of urgency, these messages may highlight the need to “act quickly” or promote the fact that debt relief registration is on a first-come, first-served basis.

Because text scams are a newer kind of fraud, consumers may not be aware of them. Instead of replying to the message, contact the number indicated on your student loan servicer’s website. Most student loan servicers will not do business through text messaging in general.

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Identifying Scams in Student Loans

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When it comes to student loan frauds, the general rule is that if something seems too good to be true, it generally is. It’s a fraud if a corporation says that if you pay an up-front charge, your debts would be erased instantly. There is no program that “automatically” forgives debts for a price.

If you suspect you are being conned, do a thorough online search for the firm. Someone else has most certainly been in touch with, and maybe exploited by, this firm.

What’s the issue with doing a scam search on the internet? Because scammers often alter their identities and phone numbers to circumvent consumer background investigation, not every fraud will have been caught by an online search. Here are a few of the most prevalent methods employed by student loan con artists.

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1. Upfront Cost & Fees

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Any student loan organization that offers to assist you for a fee up ahead is a rip-off. Companies who charge you before giving help are breaking the law, according to the Federal Trade Commission. Importantly, debtors may get free assistance from their student loan servicer or the Department of Education.

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2. Immediate Forgiveness of Student Loans

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Another major red flag: companies that promise to cancel student loans in whole or in part right away. Depending on the program, most government debt forgiveness programs need a record of qualifying payments and/or job verification.

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3. Password Requests

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In general, trustworthy businesses will not ask you to verify personal information out of the blue. Think carefully before answering to a call, email, or text that asks you to provide your passwords or other sensitive personal information. Scammers might get access to your loan information or other vital accounts if you provide personal information.

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Student Loan Scams to Avoid

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You may prevent some frequent student loan frauds by paying attention to details and communicating diligently. Here are eight student loan rip-offs to stay away from.

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1. An Unconditional Promise of Forgiveness

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Any promise that appears too good to be true should be avoided. Forgiveness of student loans takes time. A corporation can only assist you in completing the paperwork for a loan forgiveness program; they cannot cancel your debt.

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2. A Request for a Payment in Advance

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Many con artists focus on getting a charge up advance for something that either cannot be done (rapid debt forgiveness) or can be done for free online (apply for a loan forgiveness program). You should only agree to pay the firm once the work has been performed.

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3. Refinancing a Private Loan

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In general, debt forgiveness programs are only available for federal loans. Any firm that claims to be able to have your private debts forgiven should be avoided. Forgiveness schemes for private loans are uncommon.

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4. Making a Call

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A call about student debt relief is the beginning of many frauds. You will never get a call from the Department of Education, which oversees federal debt forgiveness programs. If they need to communicate with you, they will do so via the mail.

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5. A Request That They Be Paid Instead of Your Lender

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There will never be a corporation that will make your student loan payments for you. Sure, you can pay them for a service. However, paying your student loan payments to anybody other than the person to whom you owe is not a good idea.

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6. A Request to Stop Making Payments on Student Loans

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No legitimate organization would ever advise you to default on your loan payments. A firm that is looking out for your best interests will advise you to make all of your payments on time and on the suitable repayment plan so that you may take advantage of any loan forgiveness programs that are available.

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7. Requesting your FSA ID

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Your Federal Student Aid ID should never be asked for. You may use your FSA ID to access the government website where you can manage your federal student loans.

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8. Insignias That Appear to Be Official

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Fraudsters do an excellent job of imitating genuine government branding on their websites, seals, and documentation. Just because something seems to be official does not imply it is, so do your homework.

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Scams involving student loans should be reported.

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If you come across any student loan fraud, you have a few alternatives for reporting it. The Federal Student Aid website allows you to report frauds to the Department of Education.

You may also contact the Consumer Financial Protection Bureau to report the company that is perpetrating the student loan fraud. Anyone who believes they have been approached by a scammer may also report it to the FTC.

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If you’re looking for a safe private student loan, you’ve come to the right place.

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Loan forgiveness is not available to everyone. Others may not believe it is the best option for their particular financial position. (This is particularly true for debt forgiveness schemes like income-driven repayment, which require you to pay taxes on the forgiven sum.)

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The Remainder

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Scams involving student loans take advantage of the borrower’s lack of knowledge about how their loans and debt forgiveness programs function. Pay carefully to messages, emails, or phone calls that over-promise their capacity to cut your monthly payments or get debts forgiven, since these are usually signs of a scam or other bad company. To avoid falling into a scammer’s trap, contact your loan servicer immediately if you have any doubts.

Whatever course you choose for your student loans, be sure you do your homework. It’s difficult to con someone who knows their debts and repayment choices.

More information is available at:

MediaFeed.org syndicated this story, which first appeared on SoFi.com.

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AlertMe

The “department of education student loan forgiveness” is a scam that has been floating around. The Department of Education does not offer student loan forgiveness, and the website that offers this service is a scam.

  • legitimate student loan forgiveness companies
  • biden student loan forgiveness
  • student loan forgiveness 2022
  • student loan pause
  • student loan debt
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