Student loan forgiveness scams on the rise in Pennsylvania

HARRISBURG, Pa. — Student loan forgiveness scams are on the rise, the Pennsylvania Department of Banking and Securities and Pennsylvania Department of Education are warning.

Students or borrowers should watch out for fraudulent emails, letters or phone calls asking for personal information.

A recent COVID-19 pandemic-related pause in student loan payments, as well as various executive actions and benefits concerning loan balances, are leading scammers to try to take advantage of any confusion, state officials said.

Some of the scams are offering to enroll people in programs that don’t exist -- such as the “CARES Act loan forgiveness” or the “Biden forgiveness program.”

Legitimate emails about student loans should come from a “.gov” email address.

When it comes to phone calls, if in doubt, people are urged to hang up and call their servicer directly.

Anyone who thinks they’ve already been scammed should:

• Close Accounts/Stop Payment: If you shared your bank account or credit card information with a scammer, contact your bank or credit card company immediately to close your accounts or stop payments.
• Alert your servicer: If you suspect you’ve been the victim of a student loan forgiveness scam, call your servicer so that they can monitor your account.
• Monitor your credit report: Check for suspicious activity. Scammers don’t always use your information right away. It can be weeks, months, or even years before your information is used for fraudulent activity. You might also consider freezing your credit in an abundance of caution.
• Report the scam: You can report a student loan forgiveness scam to the Federal Trade Commission or the Pennsylvania Attorney General.

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