Digital Defense: Student Loan Scams
Why do Student Loan Scams Happen?
Paying off student loan debt can be daunting and overwhelming, especially if you have a large loan. Loan scammers know this and will try to bait you with fraudulent offers to quickly or immediately cancel, lower, defer, or consolidate your debt.
In reality, these fake student loan assistance programs deliver one-size-fits-all solutions, charge incredibly high fees for services that federal programs provide for free, and drive you farther into debt.
Be sure to thoroughly research any programs before applying – just because it looks official doesn’t mean it is!
The 2 Types of Student Loan Scams:
- Consolidation Scams – these companies pretend to charge you a processing fee, taking your money but never consolidating your loan. You can consolidate your federal student loans at no charge by visiting studentloans.gov.
- Debt Relief Scams – in general, student loan scams cannot be forgiven or eliminated. This excludes special circumstances like death, life-long disability, identity theft, or government-issued forgiveness plans and income-based repayment plans. However, these programs are available for free through the U.S. Department of Education; you do not need to pay someone for these services.
How can you spot a Student Loan Scam?
- Promise immediate or fast relief and cancellation
- Demand upfront fees and your FSA ID
- Rush you to apply with a looming deadline
- Pretend to be an affiliate of the Government or Department of Education
Worried You’ve Fallen Victim to a Student Loan Scam?
Please alert Adams Community Bank if you suspect a student loan scammer has been given access to your account or debit card information. In this instance, the best way to contact us is by calling Customer Connect at (413) 743-0001.
You should report the incident to the Office of the Attorney General, contact the Department of Education, and speak to your lender to review the status of your loans and ensure all of your information is accurate.
Additionally, please make sure that you consistently receive communication regarding your student loans. Scammers may alter your contact information, replacing it with their own, so your loan correspondence is delivered to them instead.
