As we usher in fall, millions of borrowers are resuming their monthly student loan payments. But unfortunately, students aren’t the only individuals with money on their mind. If you are a student or graduate, it is critical to be aware of online scammers who seek out borrowers with the aim of cashing in. Here are some strategies for protecting yourself and your finances.
Recognize Common Scams
Safeguarding yourself begins with awareness. Here are some of the most prevalent student loan scams:
Advanced Fee
Scammers promise to reduce your loan balance or lower interest rates in exchange for an upfront fee. Legitimate loan servicers do not charge fees for federal student loan assistance
Phishing
Scammers impersonate official loan servicers or government agencies through emails, websites, or phone calls, aiming to steal your personal information, including your Social Security number and financial details. Scammers impersonate official loan servicers or government agencies
through emails, websites, or phone calls, aiming to steal your personal information, including your Social Security number and financial details.
Forgiveness
Scammers claim to offer immediate loan forgiveness, even if you don’t qualify. They may request payment for this service or try to steal your personal
information.
Fake Loan Consolidation
Scammers may promise to consolidate your loans into a single, low-interest loan. They may charge fees or steal your identity during the process.
Verify Loan Servicer
This is an important step to take in general, as many loan servicers changed during the pandemic. Verify your loan servicer by visiting the official
Federal Student Aid website. If you have private loans, review any correspondence you’ve received from your original loan servicer. You can also ask your school’s financial aid office for help in finding that information or pull your credit reports at
AnnualCreditReport.com.
Use Two-Factor Authentication (2FA)
Enable two-factor authentication on your student loan account and associated email addresses. This added layer of security can prevent unauthorized access to your accounts, making it harder for scammers to breach your personal information.
Identify Red Flags
Unsolicited Communication
Scammers often initiate contact through unsolicited emails, calls, or messages.
Requests For Personal Information
Legitimate servicers won’t request sensitive information like your Social Security number or bank account details via email or over the phone.
Pressure Tactics
Scammers may pressure you to act quickly, claiming that opportunities are time-sensitive or urgent.
Unrealistic Promises
Does an offer (such as immediate loan forgiveness) seem too good to be true? Chances are, it feels that way because it is.
Poor Grammar and Spelling
Messages or websites that include spelling or grammar mistakes should raise alarm. Verify the URL and defer to official sources such as the Federal Student Aid website.
Monitor Your Credit Report
You can obtain a free annual credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) on AnnualCreditReport.com. Review these reports carefully for any discrepancies, unfamiliar accounts or any unauthorized activity relate d to your student loans.
Report Suspicious Activity
Seek Guidance
If you’re feeling overwhelmed by student loan repayment, take comfort in knowing you don’t have to navigate this process alone, at Jeanne D’Arc we’re here to help, and that includes free counseling services through GreenPath Financial Wellness where you can find guidance in securing your financial future. Find out more HERE.
