STUDENT LOAN SCAMS
Scammers will try anything to fool college students into parting with their money. Don’t get fooled! Here’s what you need to know about three popular student loan scams.
1. Student loan forgiveness scam
In this scam, a student loan debt company will contact you offering to forgive your student loan for a fee.
Sounds like a dream? Unfortunately, it’s more like a nightmare. No student loan company would completely forgive your loan, even for a fee. Because of your student loan, you are a target.
This scam seems authentic because they sound like a legitimate program. But do not be tricked. The Public Service Loan Forgiveness is for public servants with federal student loans. If you fall for the scam, you’ll still need to pay off your loan, plus you’ll lose the money you shelled out for the “fee.”
2 Student loan consolidation scam
In this scenario, a student loan company will promise to consolidate your loans and lower your monthly payments, all for a fee.
Here’s your clue that this is a scam: Though some institutions can refinance student loans, only the federal government has the power to consolidate it. And they’ll do it for free.
If you’re looking to consolidate your student loans, check out Studentloans.gov.
3. Student loan tax scam
In this con, a scammer will spoof the IRS’s toll-free number, claiming the student owes thousands of dollars for a “federal student loan tax.” The scammer will demand immediate payment upon threat of arrest or a lawsuit. They’ll also insist on a specific method of payment, like a wire transfer.
Here’s the deal on this scam: The “federal student loan tax” does not exist. Also, the IRS will never contact you by phone without first notifying you via mail, and they won’t demand payment over the phone or insist on a specific payment method. You can go directly to the IRS website here: www.IRS.gov or you can get help with the Federal Trade Commission here: www.ftc.gov
. If you’re targeted
If a student loan scammer targets you, don’t engage with the scammer. Hang up as soon as you recognize it and delete any suspicious emails that land in your inbox.
Next, bring the scam to the attention of the authorities. File a complaint with the FTC at ftc.gov, alert local law enforcement agencies and report any tax-related scams at IRS.gov.
Finally, be sure to warn your friends about a circulating scam.