Stay alert and informed with our latest blog post guiding you on avoiding falling prey to student loan scammers as repayment kick-starts.
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A Critical Time for Borrowers
As October approaches, many federal student loan borrowers are facing the resumption of their loan repayments, a responsibility paused since 2020. This has led to heightened stress levels as many grapple with financial uncertainties. Unfortunately, this period has also seen an increase in scammers looking to exploit anxious borrowers.
Rise of the Scams
Over the recent weeks, scammers have initiated a colossal scam wave, with Transaction Network Services reporting over 350,000 student loan-related robocalls. These calls promise alluring options such as significantly lower monthly payments or complete loan forgiveness, falsely representing themselves as Department of Education associates.
Recognizing a Scam: What You Need to Know
The Supreme Court has already denied a broad student debt forgiveness plan put forward by President Biden. It is imperative that borrowers remain vigilant and not fall prey to fraudulent companies offering to bypass this ruling to wipe out debts.
Remember, no “Bob Smith from Student Loan Forgiveness USA” or any other unofficial individual or organization can override a Supreme Court ruling. Engaging with such entities and transferring money in the hope of debt erasure will only result in financial loss without any benefit.
Protecting Yourself: Safe Actions to Take
To protect yourself from scammers, it is vital to never agree to up-front payments or share sensitive personal information, such as your credit card details, over the call. Legitimate repayment plans may be available through your official loan servicer, which does not require any form of payment to access.
If you receive calls, emails, or text messages offering reduced student loan payments for an upfront fee, hang up or ignore the message promptly, ensuring you do not click on any links within the message.
Seeking Genuine Help
For borrowers genuinely seeking to lower their monthly payments due to financial constraints, there are official channels through which you can seek help. Always contact your loan servicer to discuss options; do not respond to unsolicited offers, no matter how tempting they may appear.
In these trying times, while many borrowers are anxious about resuming payments, staying informed and guarded against fraudulent schemes is crucial. Remember always to reach out proactively to your loan servicer for any assistance and to report any suspicious contact to the authorities. Stay safe, and safeguard your financial future by steering clear of scams.
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