AARP Fraud Watch: Student Loan Scams

Harrisburg, Pa. (WHTM) — While federal loan repayments have been halted through Aug. 31, scammers are still targeting more than 43 million people who have student loan debt.

AARP says this is how it works:

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The scammer contacts you and claims to be a debt relief expert who can help you reduce or restructure your debt, sometimes offering instant loan forgiveness, often linked to the COVID pandemic.

The scammer may ask you for an upfront payment or personal information such as your social security number
or your FSA ID, which is your loan account username and password

AARP says here’s what you need to know:

You can learn about loan forgiveness programs for free from your loan officer or on the US Department of Education’s student aid website.

It’s illegal for debt relief companies to collect payment from you before you get results, so upfront fees are a sure sign of a scam.

Legit agencies and loan servicing companies will not ask for your social security number or FSA ID.

Student loan fraud should be reported to the FTC and the Federal Office of Student Aid.

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