Fraud Friday: 3 tips for spotting student loan forgiveness scams

May 12, 2023 | General News

Although the government’s new proposal to forgive some federal student loans is underway, scammers are still trying to fool borrowers into falling for fraudulent student loan forgiveness schemes.

With student loan payments on pause while the matter is held up in court, many folks aren’t sure where their loans stand, whether they will qualify for debt forgiveness, or what the process will be if the Supreme Court decides in its favor.

Unfortunately, scammers are always ready to capitalize on confusion, so here are 3 ways to spot a student loan forgiveness scam.

1) Student loan management services don’t usually charge fees, so perhaps the most obvious red flag is if they ask to be paid for help managing your loan.

2) Scammers may say they can get your loan forgiven early, or quickly. Student loan forgiveness is an involved, lengthy process, so be wary if someone says for a small fee they can make your loan go away just like that.

3) Student loan forgiveness scams have been around for a while, but one of new trick fraudsters are trying is telling you they can secure you guaranteed debt cancellation eligibility. No one can guarantee you eligibility, so if you are solicited in this way, you know what to do!

The best protection against student loan scams is being on top of your loan accounts. Know your federal loan servicer and make sure they have your latest contact info so you stay up on the latest news about student loan forgiveness.