Fraudsters are always working to take advantage of government relief programs and receive benefits illegally.  The pending student loan forgiveness program is no exception. Unfortunately, the possibility of being free from the burden of student debt has people more than eager to take the scammers’ bait.  

How to avoid being scammed without passing on a legitimate opportunity?

If a scammer calls you offering to consolidate your student loans, reduce your monthly payments, or speed up the repayment process – don’t be so quick to disclose sensitive information such as social security number, driver’s license number, and financial information.

  1. If you are contacted by someone claiming to be your loan servicer, hang up and call your loan servicer directly.  
  2. The US Department of Education offers legitimate loan forgiveness programs and ways to reduce your monthly payment and they’re FREE.  Don’t offer to pay a scammer to do the same.  Find out how to contact your loan servicer. 
  3. Offers of immediate loan forgiveness are too good be true.  Ask your loan servicer if you qualify for loan forgiveness (again, at no cost).  If you qualify, be warned that most government forgiveness programs require many years of qualifying payments and/or qualifying employment in certain fields before loans can be forgiven.
  4. Your loan servicer will NEVER ask for your Federal Student Aid (FSA) username and password. Do not give your FSA ID password to anyone or allow anyone to create an FSA ID for you.  Your FSA ID can be used to sign legally binding documents electronically.  

 

Have you already been scammed? If so, follow these steps:

Step 1: Log in and change your FSA ID immediately. 

Step 2: Do not share your new FSA ID password with anyone.

Step 3: Contact your loan servicer and revoke any power of attorney or third-party authorization agreement on file.

Step 4: Check to make sure no unwanted actions were taken on your loans.

Step 5: Contact your bank or credit card company and stop payments to the student loan debt relief company immediately

Step 6: Report your complaint to the Federal Trade Commission.


Have questions? Please contact Marine Bank and one of our banking professionals will be happy to assist you.