Student loan repayment scams surge with confusion over repayment restart

Americans face crushing student loan debt, and if that's not enough, since this pandemic began they have been on a crazy rollercoaster of information about repayment. Early next year, student loan repayments will start back up. Back in 2020, the Trump administration hit pause on repayments. The Biden team extended that. Then it was announced that some borrowers, but not all, would have their government student loan debt forgiven. 

And now it's official that January 31, 2022, debt payments are due again. And if this puts you in a panic, the Federal Trade Commission has posted that you are vulnerable to scams. You may have seen ads that promise to help you reduce your student loan debt for a fee. But you can do anything they can offer for free.

The FTC offers this handy list. Never pay an upfront fee. It's illegal. Don't sign up for quick loan forgiveness. Don't trust a document because it looks like it has a Department of Education seal. Scammers fake those logos. Don't fee rushed into a decision. Take your time. Don't give anyone your Federal Student Aid I-D or your social security number.

FTC Scam Warning

  1. Never pay upfront
  2. Don't sign up for quick loan forgiveness
  3. Don't trust a Department of Education Seal
  4. Don't rush your decision
  5. Don't give anyone your FSA ID or social security number

If you have questions about repayment of your loan, reach out to the Department of Education directly.

If you have question about the $11.5 billion in student debt the federal government canceled, reach out here.