Student loan forgiveness scams involve fraudulent schemes where scammers pose as legitimate loan forgiveness programs or government agencies to steal money or personal information from borrowers. These scams often promise to reduce or eliminate student loan debt in exchange for an upfront fee or personal details. The promised loan forgiveness never materializes, leaving victims out of pocket and with compromised personal information.
How This Attack Can Happen:
Student loan forgiveness scams typically occur through unsolicited phone calls, emails, or social media messages that advertise "exclusive" loan forgiveness programs. Scammers often use official-looking logos and language to appear legitimate. They may request personal information, such as Social Security numbers or bank details, under the guise of verifying eligibility. In some cases, victims are asked to pay an upfront fee or "processing charge" to access the loan forgiveness, which is never received.
How to Protect from This Scam:
Verify the Program:Verify the legitimacy of the loan forgiveness program through official sources, such as the U.S. Department of Education or your loan servicer.
Avoid Upfront Fees:Legitimate loan forgiveness programs do not require upfront fees. Be wary of any program that asks for payment.
Protect Personal Information:Do not provide personal information, such as Social Security numbers or bank details, to unknown entities.
Check for Red Flags:Be cautious of programs that guarantee success or require payment to access loan forgiveness. Legitimate programs are competitive and do not require upfront fees.
Consult Financial Authorities:Contact financial authorities or professional organizations in your field to verify the legitimacy of the loan forgiveness program.
Example of Scam:
A common student loan forgiveness scam involves the "Federal Student Loan Forgiveness Program," which promises borrowers the opportunity to have their student loans forgiven in exchange for an upfront fee. Victims pay the fee and provide personal information, only to discover that the program does not exist, and their personal information has been stolen. In one case, borrowers were asked to pay a $1,000 "processing fee" to access loan forgiveness, which was never received.