“Protect Yourself from Student Loan Forgiveness Scams”

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Warning Signs of Student Loan Forgiveness Scams

As a student loan borrower, you may be targeted by scammers. According to a 2022 report from Tech Transparency Project, 12% of Google ads related to student loan forgiveness are fraudulent. Despite the Supreme Court’s rejection of the Biden administration’s general loan forgiveness plan, scammers may still target borrowers in other federal loan forgiveness programs, such as the Public Service Loan Forgiveness program or income-driven repayment plans. To avoid scams, only use the Education Department’s applications and ignore urgent messages claiming you need to act now for student loan forgiveness.

Red Flags to Identify Student Loan Forgiveness Scams

While many debt relief companies offer legitimate services, others are scams. Here are some warning signs to watch out for:

• Upfront Payment: If you’re asked to pay an upfront fee for student loan debt relief, it’s likely a scam. The Education Department never charges fees for applying for student loan forgiveness or other forms of debt relief.
• Unrealistic Promises: Be wary of ads making grand claims like “Your account has been flagged for student loan forgiveness. Call now to activate debt relief.” If it sounds too good to be true, it probably is.
• Immediate Results: No one can promise immediate forgiveness or cancellation. Most federal student loan forgiveness programs require qualified payments over several years or specific employment fields.
• Urgent Response: Scammers may pressure you to act quickly. Remember, the Education Department will not use aggressive advertising language.
• FSA ID Password Requests: Scammers may impersonate loan servicers and ask for your FSA ID password. The Education Department and its partners will never request this information.

4 Ways to Avoid Student Loan Forgiveness Scams

Here are four strategies to protect yourself from student loan forgiveness scams:

1. Work with Official Sources: Apply for student loan forgiveness only through the official website at StudentAid.gov. Verify that a servicer is on the government’s list of contracted federal loan servicers before contacting them.
2. Ignore Aggressive Messages: The Department of Education never sends advertising-style messages. Be cautious of emails from addresses other than noreply@studentaid.gov, noreply@debtrelief.studentaid.gov, and ed.gov@public.govdelivery.com.
3. Don’t Pay for Relief: There’s no fee to apply for federal student loan forgiveness programs. Contact your loan servicer for free assistance if you’re having trouble making payments.
4. Protect Personal Information: Be wary of emails or texts asking for account details. Phishing scams often use official-looking messages to steal your identity. Contact the Department of Education or your loan servicer directly using their official phone number.

What to Do if You Think You’ve Been Scammed

If you suspect you’ve been scammed, take the following actions:

• Report the Incident: Contact the Federal Trade Commission at 877-382-4357 or online at ReportFraud.ftc.gov. You can also report to your state’s attorney general.
• Inform Your Servicer: Contact your federal loan servicer or private student loan lender immediately to prevent any harmful activity.
• Involve Law Enforcement: Report financial fraud to the FBI at 202-324-3000 or tips.fbi.gov. You can also report to the Department of Education Office of the Inspector General hotline at 800-MIS-USED (800-647-8733).
• Contact Your Bank: Inform your bank if a scammer obtained your banking information. They can stop payments to fraudulent companies.

Monitor Your Credit and Identity

Even with precautions, your personal information can be compromised. Consider signing up for free credit report monitoring for real-time alerts on suspicious activity. Services like Experian IdentityWorksSM can help detect and resolve identity theft, offering up to $1 million in identity theft insurance.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. We are here to assist you with all your mortgage requirements.

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