Student loan payments start in less than a month, so Pennsylvania Attorney General Michelle Henry is issuing reminders on how borrowers can protect themselves from scammers.
One scam Henry says to look out for is solicitation calls offering loan discharge, forgiveness, cancellation or relief services for a fee. This is something she says the U.S. Department of Education and student loan servicers will not do.
“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. “My office wants borrowers to know about reliable resources available to them at no charge or security risk.”
Another way to avoid scammers is not answering calls from phone numbers you don’t know, and be wary about messages left on voicemail, through text or by email.
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Henry suggests only revealing personal information if you’re sure you’re talking to the Department of Education, Federal Student Aid or your loan servicer. You can find information on your loan on the Federal Student Aid website.
Henry also encourages the public to enroll in federal programs that may make it easier to pay off student loans or get them forgiven.
Those working in public service can enroll in the Public Service Loan Forgiveness Program. This allows people to earn forgiveness on loans after 10 years of repayment while working for a qualifying employer.
There’s also the new federal SAVE plan. It’s an income-driven repayment plan that can reduce payments significantly. The plan calculates monthly payments based on income and family size, rather than loan balance. After a set number of qualifying payments, your remaining balance is forgiven.
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