Beware of Student Loan Forgiveness Email Scams: Student loan forgiveness scams may manifest in text messages, emails, or phone interactions that are dubious. The following is a guide to identifying and avoiding these hoaxes and what to do if you suspect you have been the target.
Con artists usually use harsh tactics and false promises to entice gullible borrowers into their traps. In the first quarter of 2023, the Federal Trade Commission received close to 500,000 reports amid accusations of fraud. As a result, it’s critical to stay vigilant and spot possible fraud.
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Identify and avoid student loan forgiveness schemes by following these steps:
The Department of Education only accepts electronic letters from official U.S. email addresses like noreply@studentaid.gov and ed.gov@public.govdelivery.com. Phone numbers like 227722 or 51592 send text messages.
If student loans are causing financial hardship, consider legal aid. Ask your loan servicer about debt consolidation or income-driven repayment options first.
Beware of debt reduction companies that overcharge for services your service provider provides for free. Before hiring a reputable company, do your research and verify their credentials.
Upon suspecting that you have become a target of student loan fraud, you should immediately contact your student loan servicers to inquire about any modifications to your account.
Contact any credit card or bank institutions that are affiliated with your student loans. Ensure that the scammer’s payments are halted, and alter your passwords. Additionally, you should modify the credentials that are linked to your StudentAid.gov account and the servicer for your student loans.
Monitoring your credit is important because a fraudster could open a bank account or credit card in your name with your personal information. Capital One’s free CreditWise® service monitors your credit score and alerts you if a creditor tries to obtain your Social Security number or other personal information.
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