SCameras have always found ways to affect society. The new orange of crooks is the student loan scams.
It’s similar to what they do during tax season. Scammers call taxpayers impersonating the IRS, saying there is a payment pending and they need the money now.
If you receive a calling a debt relief company promising to repay your loans, do not accept them.
the US Department of Education legitimate offers student loan forgivenessprograms and ways to lower your student loan payments, all free to request through your official loan officer.
How do you know a student loan scammer is calling?
Pay an upfront cost or monthly fee
If you are asked to pay fees in advanceyou get scammed.
If you’re having trouble making your monthly payments, your loan officer can work with you to switch to a more affordable repayment plan at any time. no additional costs yours.
Immediate loan cancellation promised
No one can immediately and totally promise student loan forgiveness or cancellation.
A student debt relief company may claim to get rid of your loans quickly, but most government pardon programs need a lot years of qualifying payments and/or qualifying employment in certain fields before the loans can be forgiven.
Your loan manager can also help you determine if you qualify for a free loan forgiveness.
Asked for your FSA ID password
Neither ED nor your loan officer will ask you for your FSA ID password. Your FSA ID is used to electronically sign legally binding documents. It has the same legal status as a handwritten signature.
If you share this information or sign a power of attorney, you are giving a debt relief company the power to take any action it chooses, to do decisions for youand act on your behalf.
If the debt relief company collects a fee from you, but never make payments on your behalf, you will always be liable for overdue payments, accrued interest and late fees.
What if I am the victim of a scam?
If you have already submitted your personal information or paid a student debt relief company:
-Log in and change your FSA ID
-Contact your loan officer to revoke any power of attorney or third party authorization agreement your officer has on file
-Ensure that no adverse actions have been taken on your loans
-Contact your bank or credit card company and request that payments to the Student Debt Relief Society be stopped
– File a complaint with the Federal Trade Commission
-File a Suspicious Activity Report through the Federal Student Aid Feedback System