Monday, August 29, 2022
Last week, the federal government announced big changes to student loan repayment and relief, and scammers are looking to take advantage. The government plans to cancel up to $20,000 in federal student loans per borrower and extend the payment pause on federal student loan repayments through the end of the year. It also recently announced important changes to public service loan forgiveness (PSLF) and income-driven repayment plans.
These changes will make a real difference in the financial futures for millions of Americans with student loan debt. But as always, scammers will seize on this good news to steal your money and personal information. Follow these tips to avoid getting scammed:
- If an unknown caller or email sender asks for your personal information, including your Federal Student Aid ID (FSA ID), don’t respond. Your loan servicer and the Department of Education (DOE) will not ask you for personal information over the phone or in an email.
- Be patient. Anyone promising instant debt relief is a scammer. The DOE will need time to implement the new programs and get relief to borrowers. No company can help you speed up the process. You can subscribe for updates from the DOE here.
- Never pay upfront for assistance with your student loan debt. Under North Carolina law, it’s illegal for companies to charge a fee to modify debts.
- Contact your loan servicer directly with any questions. Your loan servicer can help you get access to…
