Authorities Warn About Student Loan Scams: Here’s What To Look For

Federal and state officials are warning consumers that student loan scams will spike following Friday’s SCOTUS ruling.

Student Loan Scams ( Photo: www.freep.com )

In a consumer warning issued Saturday, the FTC said student loan scams “often take advantage of the confusion over big news like this”

Student loan scams target student borrowers after the Supreme Court on Friday rejected the Biden administration’s debt relief plan, with loan repayments expected to resume in the fall, according to the U.S. Federal Trade Commission. The Biden administration’s amnesty plan, if successful, would have eliminated up to $20,000 of state student loan scams.

Student loan scams are predictable and avoidable if someone is vigilant

In the statement, officials outline the most common reasons scammers try to access sensitive information about student loan scams. It is common, to spoof calls and texts to offer student loan scams and fraudulent caller IDs to make the call more legit.

Any person who contacts you is prompting you to send money and provide personal information or request an advance payment in order to process your Application. This could be one of the red flags of student loan scams. The person contacting you asking for your federal student aid ID number is another suspected student loan scam.

If someone offers to help you with student loans and has fees, it’s clearly a student loan scam because “there’s nothing a company can do that you can’t do on your own for free”. If you think you may be the target of student loan scams, the FTC and FCC recommend cutting off communication immediately.

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