How to Spot a Student Loan Scam (Red Flags)
Signs that you are being targeted. These are red flags!
- Contacted via phone, text or email by a company other than your federal student loan servicer regarding your student loan
- Asked for initial and monthly maintenance fees to sign up for services
- Asked to sign a Power of Attorney or document that allows the company to act on your behalf
- Asked to provide your User ID and password
- Asked for credit card or debit card information
- Urged to act quickly because loan forgiveness programs are ending
- Urged to act or forfeit rights to your student loan benefits
- Told you that your student loan servicer will not help you
In some cases, document preparation companies compare themselves to a tax preparer offering a paid service to help you complete complex student loan paperwork. What’s important to remember is that your student loan servicer offers assistance for FREE.
If you think you have been scammed, follow these steps.
These are FREE services offered by your federal student loan servicer: Forgiveness/discharge, consolidation, options to lower and postpone monthly payments.
Not sure who your servicer is? You can find them by logging into My Federal Student Aid.