Reports are flooding into the Better Business Bureau (BBB), detailing various scams related to student loan repayments and student loan scammers. Tom Bartholomy, the president and CEO of BBB, issues a stern warning to borrowers: “Don’t be fooled by the scams that are leveraging today’s news to deceive you.”
Student Loan Scammers Target Borrowers
As the countdown to the end of the payment pause begins, student loan scammers are seizing the moment to dupe vulnerable individuals. Their tactics often involve exploiting the confusion surrounding the current situation.
According to Spectrum News, Bartholomy summarizes their deceitful promises by saying, “With all the chatter about the pause coming to an end, scammers are suggesting that there might still be a glimmer of hope for student loan forgiveness.” This ambiguity, he notes, is precisely what student loan scammers thrive on.
The promises these student loan scammers make seem almost too good to be true. They dangle the possibility of wiping clean your student loan slate or drastically reducing the amount you owe in the end. However, the most glaring warning sign is their insistence on charging fees for services that are, in reality, free.
BBB President Issues Warning About Student Loan Scammers
So, what can borrowers do to protect themselves from falling victim to these nefarious student loan scammers? Bartholomy offers some invaluable advice:
- Consult Your Loan Provider: When it comes to understanding loan consolidation and payment plans, go directly to the source – your loan provider. They have the most accurate and up-to-date information regarding your specific situation.
- Beware of “Free” Government Programs: Government programs designed to help with student loan repayment are typically free or offered at a nominal cost. Be highly skeptical of any organization or individual demanding substantial fees for services related to these programs.
- Guard Against Unsolicited Phone Calls: Student loan scammers often reach out via unsolicited phone calls or emails. If someone contacts you out of the blue with a too-good-to-be-true offer, exercise caution and verify their legitimacy before taking any action.
- Question Friend Referrals: While referrals from friends can be valuable, remember that student loan scammers sometimes exploit personal connections to gain your trust. Be sure to independently research any financial service provider recommended by a friend.
As the student loan payment pause nears its end, it’s crucial for borrowers to remain vigilant and informed. While legitimate options for loan relief and forgiveness do exist, falling for student loan scammers can lead to financial devastation.