State attorney general warns of debt relief scams with student loan payments about to restart
HARRISBURG, Pa. (KDKA) -- With student loan payments set to restart in October, Pennsylvania's attorney general is warning about debt relief scams.
Attorney General Michelle Henry said scammers are always looking for ways to catch consumers by surprise, so be wary of potential solicitation calls offering loan discharge, forgiveness, cancellation or relief services for a fee. The U.S. Department of Education and your federal student loan provider will never charge you a fee for enrolling in any repayment plan, Henry said.
If you don't recognize a number, don't answer it. If the caller is legitimate, they'll leave a voicemail or send you a text or email. And if those seem suspicious, ignore it, the attorney general said.
When you're talking about your loan, Henry said to always make sure you're working with the Department of Education, Federal Student Aid or your loan servicer. Never give anyone your personal information or account password unless you know for certain who you're talking to.
You should never have to pay for financial aid advice or help enrolling in any income-driven repayment plans or any forgiveness programs. All of those are free to enroll in if you qualify, Henry said.
Student loan repayments are resuming after a three-year pause because of COVID. The Supreme Court blocked President Joe Biden's plan to erase up to $20,000 in debt per borrower and interest started accruing on Sept. 1, with monthly payments restarting in October.
Henry also encouraged Pennsylvanians to enroll in the federal SAVE plan, which is an income-driven repayment program.
"Scammers are sophisticated and aware of consumer trends, so there is reason to believe the return to student loan payments will result in an influx of attempted fraud, theft, and other criminal activity," Henry said in a news release. "My office wants borrowers to know about reliable resources available to them at no charge or security risk."
Your loan servicer may have changed during the pandemic, so if you don't know who your current loan servicer is, log onto www.studentaid.gov to find out, Henry said. Then make sure you contact your servicer with information listed on their website.