Beware! AZ Attorney General Warns of New Student Loan Scam
Every time you turn around, it seems there's a new scam targeting specific groups. This time scammers have student loan borrowers in their crosshairs. As the president and others dangle the promise of student loan forgiveness in front of voters, the question has been brought before the Supreme Court.
While the US Supreme Court recently struck down the decision to allow student loan forgiveness, Arizona Attorney General Kris Mayes issued a warning to Arizona borrowers.
The loan repayments will begin again soon, and the Attorney General would like Arizonans to be aware of scammers.
Scammers are Coming
You may notice a sudden ramping up of scam calls, emails, text messages, and letters from fraudsters who pretend to be loan servicers. The scammers may contact you with the promise of debt relief.
In a recent press release, Arizona Attorney General Kris Mayes advises, "Knowing the signs of a scam, particularly around debt relief and loan consolidation, can help borrowers avoid being defrauded by bad actors. If borrowers feel they have been scammed, they should file a consumer complaint with the Attorney General's Office for assistance."
Know Who to Send Money To
Federal student loans will again begin accruing interest on September 1, 2023, and consumers should be aware that payments will resume in October.
Be sure you know who is servicing your student loans, as the loans sometimes change hands.
Loan servicers will notify borrowers at least 21 days before your payment is due. Ensure you know the information you get is legitimate before you begin handing over your payments.
The press release offers this checklist to keep you safe. All borrowers should take these steps to avoid being an easy target for scammers.
- Update your contact information in your profile on your loan servicer's website and in your StudentAid.gov profile.
- Review your auto-debit enrollment or sign up for the first time. Log in to your loan servicer's website or contact your loan servicer directly.
- Check out Loan Simulator to find a repayment plan that meets your needs and goals or to decide whether to consolidate.
- Consider applying for an income-driven repayment (IDR) plan. An IDR plan can make your payments more affordable, depending on your income and family size.
Be Alert to Scams
Get ahead of possible scams. Keep an eye out for any unsolicited phone calls, letters, emails, texts, or social media messages from businesses that claim to offer student loan debt relief.
Anyone offering "immediate or fast debt relief" or forgiveness, especially those who impress a looming deadline on you is probably trying to get you to fall for their scam. Don't let back actors take you for a ride. If the offer sounds too good to be true, it probably is.
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