Fast and easy forgiveness of your student loans! Sound too good to be true? That’s because it is. Watch out for scams that entice student loan holders by claiming they can erase their debt.
How the scam works:
You see a post on Facebook or other social-media channels claiming that a company can erase your student loan debt. By using profile information on social-media channels, these scam artists target people who identify themselves as former college students or alumni, particularly younger individuals who are more likely to have student debt.
These con artists attract victims by marketing official-sounding programs, some of which don’t exist, or they offer “free” services that aren’t free at all. They often do this by providing a link from a sponsored Facebook or social-media post to a fraudulent or misleading website landing page.
Once they’ve “hooked” their targets on the website, the company asks for an upfront fee to negotiate with your student loan lender on your behalf. They often claim they’ve helped numerous other clients, but don’t believe them! Student loans can only be only be forgiven under very specific circumstances, which are not fast or easy.
These scammers will simply take your money and disappear. In another scam, con artists claim they can save you money by consolidating your loans, charging a fee for using a free government service. Other scams try to move your loans to a private lender with a higher interest rate.
Where can you find trustworthy information and assistance about student loan debt?
For reliable information on your student loan debt, contact Federal Student Aid, an office of the U.S. Department of Education. This website can answer questions you may have about your existing loans, offer information about your options, and point you to legitimate sources of information about student loan indebtedness. For additional information about these scams and loan-indebtedness assistance, visit the Federal Student Aid website at https://studentaid.ed.gov/sa/about/announcements/debt-relief-message.