FTC warns scammers ready to take advantage of student loan confusion

Did you hear about the Supreme Court decision on student loan debt relief? So did scammers, the Federal Trade Commission warns.

Repayments are restarting in October, but it’s likely you could be hearing from scammers soon who are ready to take advantage of confusion around big news like this, the FTC says.

So how will you know what’s real and what’s a scam?

It’ll help to start getting ready for repayment now. Here are some first steps from the FTC:

If you’re worried about repaying your loans, the offers to “help” can be tempting. Scammers are likely to start blasting out robocalls and texts about “helping” you with your loans. So, before you act, know how to spot the scams:

  • Never pay for help with your student loans. There’s nothing a company can do that you can’t do yourself for free. Get help at StudentAid.gov/repay. If your loans are private, go directly to your loan servicer.
  • Don’t give away your FSA ID login information. Anyone who says they need it to help you is a scammer. If you share it, the scammer can cut off contact between you and your servicer — and even steal your identity.
  • Don’t trust anyone who contacts you promising debt relief or loan forgiveness, even if they say they’re affiliated with the Department of Education. Scammers try to look real, with official-looking names, seals, and logos. They promise special access to repayment plans or forgiveness options — which don’t exist. If you’re tempted, slow down, hang up, and log into your student loan account to review your options.

If you spot a scam, the FTC wants to hear about it. Report it at ReportFraud.ftc.gov.

About the Author:

A Jacksonville native and proud University of North Florida alum, Francine Frazier has been with News4Jax since 2014 after spending nine years at The Florida Times-Union.