BBB Scam Alert: This new impostor scam targets student loan holders
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(BBB) -- Scammers wasted no time capitalizing on the Biden Administration’s plan to cancel some federal student loan debt, as BBB predicted. BBB Scam Tracker has already received reports from consumers who have been targeted by impostor loan forgiveness calls and emails.
Read more below or listen to BBB Regional Director Whitney Quick here:
How the scam works
You receive a call or voicemail from someone claiming to represent a new student loan forgiveness program. To see if you qualify for forgiveness, the scammer insists that you need to complete an online application form, which asks for personal information, such as your bank account details. One consumer reported the following experience to BBB: “My daughter received a voicemail from ‘the Biden student loan forgiveness program’… She returned the call and spoke with “Peter,” who asked for her email address and telephone number. He asked if she wanted to see if she qualified for the loan, but when we started asking him questions… he got frustrated and ended the call.” In other variations, the scammer insists that you need to pay an upfront fee or even redirect your current student loan payments to them. For example, another person targeted by this scam told BBB: “I got a "Final Notice" letter that has the debt amount listed… Thinking it was from the federal student loan department, I called. They had me change my password and got my bank account number. [And] direct payments to them.” Currently, most of the student loan forgiveness scams reported to BBB Scam Tracker are government impostors. But watch out for new variations as scammers have time to get creative.How to avoid student loan forgiveness scams
PRESERVED_BLOCK_0For more information
Get more solid advice by reading the BBB Tip: Student loan forgiveness is here. Here’s how to avoid scams. You can also read up on government impostor scams in this BBB study and learn how to spot a scam. For information on federal student loan repayment options, visit the official government website, StudentAid.gov. This is the best way to determine if you qualify for loan forgiveness and how to receive it. If you spot a student loan forgiveness scam, report it. Sharing your experience on BBB.org/ScamTracker can help other consumers spot the scam faster. Subscribe to BBB's weekly Scam Alerts.Topics
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