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October 10th, 2023
Have you received an unexpected call from someone telling you that your student loan will be forgiven? While this sounds like a blessing, it would be a nightmare if you believe in them right away. In reality, these are often scams aimed at getting your personal information.
In this article, we’ll talk about the student loan phishing scams out there. Understanding what these scam calls are after will help you avoid them. and what you can do to avoid them.
The Student Loan Crisis
The student loan crisis has been a growing topic of discussion in the past few years. This conversation has been taking place on a national scale, with politicians making this issue the key focuses of their campaigns. In the U.S., student loan debts have reached $1.75 trillion. These are expected to increase, especially since most people are experiencing financial difficulties from the pandemic, The department of education extended the protection provided by the Cares Act to May 1, 2022. Meaning that borrowers don’t have to resume payments until that date. Scammers see this difficult situation as an opportunity to capitalize on unsuspecting people’s fears and insecurities.
Learning More About Student Loan Forgiveness Scam Calls
Student loan forgiveness calls (especially those featuring a robotic voice) are usually trying to get you to tell them your sensitive information in order to scam you. These calls will ask you to give up your social security number. Once they have this number, they will send your life into disorder by stealing your identity. This is known as a phishing scam.
These phishing scams also come in the form of random messages or emails “informing you” about student loan forgiveness. However, note that people from legitimate student loan forgiveness programs will usually not call you. Meaning, if you receive one of these messages, it is likely to be a scam. In reality, you would call a student loan forgiveness center yourself to know more about the program through their website.
There are some signs that can help you quickly decide whether or not the student loan forgiveness center you’re talking to is real. Here are just. few signs to let you know when it’s time to look elsewhere:
Demand for Upfront Payment
There are some legitimate companies who will help you work on loan forgiveness, get a lower interest rate, or gain scholarships and grants. However, scammers who are posing as part of the student loan relief program will require you to have an upfront payment even before providing their service.
Remember that you shouldn’t have to pay any amount to file for a legitimate student loan forgiveness program. Also, you can apply for the program even without a counselor’s or company’s help, especially since you can get the instructions and the requirements online or from the loan servicer.
High-Pressure Tactics
Another sign that you’re dealing with student loan forgiveness scam calls is that you’re being pressured to get their service, share your personal information, and settle the upfront fee. This way, you’ll no longer have the time to research and find out that they’re a fraud.
They’ll tell you that the forgiveness program will soon expire, or you have a chance to lower your monthly payment or interest rate until a specific period. Applying for student loan forgiveness requires time and research.
Unrealistic Offer
Scammers will tell you that you can enjoy immediate relief once you send the payment requested. However, real student loan forgiveness programs have a complete set of requirements, including the number of years required before you can qualify.
For Public Service Loan Forgiveness (PSLF), you need to have 10 years of experience working in a government agency or nonprofit organization before your loans may be canceled. If a caller suddenly tells you that your student loan will be discharged in an instant, you’re probably dealing with a scammer.
Request for Sensitive Information
As we’ve mentioned, random student loan forgiveness calls are a type of phishing. Their only purpose is to get your personal information. These include your Social Security number, credit card information, and Federal Student Aid (FSA) ID username or password. Instead of sharing any of these details, end the call. It is much safer to contact the loan servicer directly with their official phone number.
They claim of Affiliation With the Department of Education
Student loan relief scams will claim to be affiliated with the U.S. Department of Education to gain your trust. Some will even copy the logos of the government agency when sending spam messages or emails. To ensure that the company is indeed working with the Department of Education, refer to the list of legitimate loan servicers.
Reject Student Loan Forgiveness Scam Calls With Social Catfish
Unannounced phone calls telling you about immediate student loan forgiveness sounds too tempting, especially when you’re in a financial crisis. However, know that these are only the works of scammers trying to capitalize on your economic distress.
Refuse to be their victim and learn about their real identity by adding their name, phone number, email ad, or image to our reverse search platform!
