FTC issues warning as student loan scams surge

Since federal student loan repayments started back, scammers are looking to fool people out of their money, and they’ve got nearly 27 million people to target.
Published: Oct. 5, 2023 at 7:37 AM EDT|Updated: Oct. 5, 2023 at 7:48 AM EDT
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ATLANTA, Ga. (Atlanta News First) - As you or someone you know are repaying student loans, it’s important to watch out for people who want to steal your money.

Keep in mind that people are already dreading these monthly payments, especially people whose budgets are stretched thin as it is. But scammers are still hoping to fool people out of their money, and they’ve got nearly 27 million people with federal student loan debt to target.

These scams come in many forms, including a robocall like this.

“Press one now to see if you are eligible to get your loan completely forgiven. This recent announcement could potentially eliminate 100 percent of your federal student debt.”

Federal agencies say scammers are trying to use calls like these to get personal information or money to provide a fake service.

The Federal Trade Commission says in order to avoid being scammed, you should never give out personal information, including your federal student aid login ID.

You’ll also want to manage your own paperwork, which you can do for free on the federal student aid website.

Finally, if anyone promises you debt relief, even if they claim to be from the Department of Education, or ask for upfront payments, the FTC says you should not trust them. If something is legitimate, you could always call back on a number you know is reputable.

To report a scam, click here.