Before the student loan payoff scheme proposed in Congress was birthed, there were multiple student loan repayment scams. Regrettably, US taxpayers may not be able to avoid getting caught in the scheme currently being proposed in Congress. But Bottom Line Personal did a short article on avoiding getting caught in any of the earlier scams. Here’s an update on what they had to say to hopefully keep you from being scammed.
The first point in the article tells us to beware of promises of instant forgiveness. Where have we heard something like this before? Remember the comment that if it’s sounds too good to be true, it usually is? Those scams are out there, and they sound too good to be true.
Second, avoid any upfront fees. Asking money up front is a classic sign of a scam, particularly if they ask for the money in cash, gift cards, or virtual currency. With most other forms of payment, you could have some recourse when the scam is discovered.
Third (and I see this all too often) is an offer that is about to expire or is just for a limited time. Scammers want us to act on emotion, not on logic. Thinking logically would tell us that the schemes are scams.
And watch out for something labeled the “Biden loan forgiveness program” or something like that. It’s a hook, and if we bite, we’ll be caught. Lots is being written about what can and can’t be done on student loans. If a legitimate program arises, the news will come from legitimate sources.
One bonus tip in the article was “never give out your Federal Student Aid ID or National Student Loan Data System PIN” to anyone. Those could be used to add to the debt burden, not lift it. Scammers could also use those numbers to steal student loan payments by redirecting them into their own accounts.
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Source: Bottom Line Personal April 15, 2017 – Student Loan Repayment Scams