With millions of Americans in student loan debt, it is no wonder there is a proliferation of scammers looking to take advantage of borrowers’ stress and financial hardships. It is precisely because of this seemingly never-ending burden that debt-weary borrowers become prime targets for scammers promising relief from federal student loans.
It is important to watch for warning signs that you are being targeted or might have already fallen victim to a student loan scam. By being aware of the indicators and risks, you’ll know how to protect yourself.
Requiring Payment Upfront
While some legitimate organizations assist with student loans, be cautious of those demanding hefty fees before providing any service. It is illegal for companies to collect money upfront. Additionally, charging for help with repayment plans, forbearance, or deferment is a major red flag—these applications should be free.
Requesting Sensitive Information
An entity asking for your Social Security number, Federal Student Aid (FSA) ID and password, and other sensitive information is a red flag. The Department of Education, its agencies, and partners will not need to ask for this information. Never share personal data, such as login credentials, that will give anyone access to your account.
Offering Big Promises
If a company or individual offers something that sounds too good to be true, it likely is. Promises of complete or immediate cancellation of your student loan debt, especially for a fee, should raise alarm bells about a potential student loan scam.
Pressuring You To Act Quickly
Scammers tend to be pushy, creating a sense of urgency because they want you to quickly take action and sign up before you’ve had the chance to review and understand the facts. Be wary of those telling you an offer will expire soon or that you’ll face penalties if you don’t accept their proposition.
It is understandable to want to seek assistance, especially if you’re having trouble getting your loans under control. However, you must diligently research legitimate programs so you can avoid falling prey to illegal entities.
Turn to Heartland Credit Union for Reliable Student Loan Options
At Heartland Credit Union, we prioritize our members’ financial well-being. We offer reliable resources, including affordable student loans, financial coaching, and investment options. Contact us today to explore the best ways to invest in your future without falling victim to scams.
