As millions of students and parents gear up for a new school year, scammers are ramping up efforts to steal personal and financial information by posing as legitimate student loan relief providers. With constant headlines about student loan forgiveness and repayment changes, fraudsters are taking full advantage of the confusion.
What’s happening
Scammers are contacting borrowers by phone, text, email, and even social media, claiming to be from the Department of Education or a loan servicer. They promise quick loan forgiveness or lower monthly payments – for a fee. In reality, they’re stealing personal info and collecting payments for free services through official government sites.
Red flags to watch for
- Upfront fees or monthly charges for enrollment in forgiveness programs
- High-pressure tactics like limited-time offers or threats to garnish wages
- Requests for your FSA ID, Social Security number, or bank account info
- eMails or texts that don’t come from a .gov address
- Promises that sound too good to be true, like guaranteed forgiveness
Real stories, real damage
Victims have reported losing hundreds or even thousands of dollars to scammers posing as loan counselors. Some even unknowingly signed away power of attorney or access to their accounts, leaving them unable to manage their real loans.
How to protect yourself
- Never pay for student loan help. Official programs are free through StudentAid.gov
- Don’t share your FSA ID or login credentials with anyone – not even someone claiming to be a loan advisor
- Log in to your account directly at StudentAid.gov to check your loan status or apply for repayment plans
- Report suspicious activity to the FTC at ReportFraud.FTC.gov or to your loan servicer
Bonus tip for parents & students
- If your student is heading to college, take this opportunity to talk about safe borrowing, trusted resources, and how to spot a scam. First-time borrowers are especially vulnerable to schemes disguised as “help.”
Final word
Scammers are counting on you to be overwhelmed by paperwork and unsure about your next step. Don’t let them win. Stay informed, trust official sources, and reach out if something doesn’t feel right.
Your password is private – keep it safe!
We’re committed to protecting your account from fraud. Remember, we will NEVER call, email, or text you to ask for your password under any circumstance. If you receive any communication asking for personal information while impersonating the Credit Union, do not respond. Instead, contact us immediately at 800.866.6474.