Student Debt Relief Plan Related Scams Escalating As Repayments Resume in October

The pause on payments will officially end which suggests that repayments will resume in October. As a result, Student Debt Relief Plan related scams are escalating as scammers capitalize on some borrowers’ lack of awareness.

Student Debt Relief Plan Scams [Photo: UniCreds]

Upfront Costs or Monthly Fees

According to Holden, Student Debt Relief Plan borrowers must not pay any upfront costs or monthly fees. However, Student Debt Relief Plan borrowers could work with legitimate and trusted loan providers on the amount of payments and make changes based on their income.

Total Loan Forgiveness

Scammers will claim that under the Student Debt Relief Plan, total loan forgiveness is possible by providing bank information and a Social Security number. Unfortunately, entrusting these pieces of information will ultimately lead to identity theft and loss of funds.

READ ALSO: 7,000 Student Loan Borrowers Can Get $3.5 Million Refund From A Debt Relief Company; Check It Here!

Student Aid ID or Password

According to Smith, the federal student aid ID or password reportedly has the same power as a legally written signature. The U.S. Department of Education states that scammers can make decisions without a Student Debt Relief Plan borrower’s consent with these pieces of information and it is very difficult to regain control of them.

Deal Directly with Loan Service Provider

Directly dealing with loan service providers will provide Student Debt Relief Plan borrowers with any type of loan assistance. Providers have the option to work on adjustments, lower payments, and look into additional programs.

READ ALSO: Cancellation Of Student Debt Relief Plan Left Rep. Frost To Urge Biden In Granting Loan Relief