How to Protect Yourself from Student Loan Scams as Bills Resume

As people get ready to start repaying their federal student loans again this fall, there are some important changes and challenges to be aware of. You should also be on the lookout for scammers who are trying to take advantage of the situation.

Whenever things get confusing, scammers try to trick people. That's what Clayton LiaBraaten, an advisor at Truecaller, says. Truecaller is an app that stops spam calls.

You need to protect yourself from these scammers, even though the authorities are trying to stop them. In August, the Federal Trade Commission (FTC) caught a group of scammers who made about $8.8 million by making false promises about "Biden Loan Forgiveness" and asking for upfront fees. They pretended to be connected to the U.S. Department of Education and mostly targeted people through phone calls and text messages.

If you get a call or text message that you didn't ask for about your student loans, it's likely a scam. Here's how to recognize and avoid these scams, according to experts.

**What to Be Cautious Of:**

Government-Like Claims:

Scammers often use words like "federal" and pretend to be linked to the government or the Education Department. If they sound like they're selling something with guarantees and promises, it's not the government.

Paying for Help:

If someone asks you to pay money upfront or monthly to get help with your student loans, it's a scam. Legitimate federal student loan assistance is always free.

Too Good to Be True Promises:

 Be careful if someone promises instant relief for your student loans. Most real relief programs need years of payments to qualify, and no one can make a special deal with your loan servicer or the government.

**How Scammers Contact You:**

Robocalls: 

If you get a call from an unknown number, think twice. Scammers make a lot of robocalls about student loans.

Snail Mail: Scammers might send letters by mail, but watch out for mistakes in the letter, like bad spelling and grammar.

Texts and Social Media:

Scammers are also using text messages and social media to trick people. Be careful, and make sure you're dealing with legitimate sources.

Email: 

Scammers may try to trick you through email. Check the sender to be sure it's from a real source.

**How to Protect Yourself:**

Hang Up or End the Call:

If you get a call about your student loans out of nowhere, hang up. If it's a robocall, just hang up. If it's a person, end the call and do some research on your own.

 Don't Click on Links:

If you get an email or text about your student loans, don't click on any links.

Secure Your Accounts:

Use strong passwords and two-factor authentication for your online financial accounts, including StudentAid.Gov and student loan servicer accounts.

Never Share Your Password:

Don't give your password to anyone. Scammers can do harmful things with it.

**What to Do If You're a Victim:**

Contact Your Student Loan Servicer:

Tell them what happened and check if the scammer did anything to your account.

Call Your Bank and Credit Card Company:

 Ask them to stop any payments to the scammer.

Change Your Passwords:

Change your passwords for financial accounts and student loans.

Monitor Your Finances: 

Check if someone has opened an unauthorized account in your name.

Consider Freezing Your Credit:

If you think the scammer has your personal information, freeze your credit to prevent identity theft.

Save All Records: Keep any texts or emails from the scammer and report the scam to the FTC and law enforcement.

Report the Scam:

Let the FTC, your state's attorney general's office, or the Consumer Financial Protection Bureau know about the scam. The FTC can help you recover your money if it is stolen.

Remember, the quicker you act, the better your chances of getting your money back. Don't let these scammers take advantage of you. Be vigilant and protect yourself from student loan scams.