Student loan scams are on the rise as the pause on payments is due to expire

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The Federal Trade Commission warned about an increase in student loan scams. Those scams prey on confusion. President Biden said during his campaign that he was open to forgiving some student debt, but that hasn't happened yet.

"This message is from the Department of Education. All programs for student loan forgiveness will be stopped immediately. In order for you to qualify, you must apply within the next 24 hours..."

"If consumers had an easy, convenient channel of communication to their servicers and they knew that if they had any question at all, they'd be able to call up their servicer and be able to get accurate, actionable information ... then I think consumers would be in a far less vulnerable position than they are in right now."How to avoid scams — and what to do if you get conned

But what do you do if you have already taken the bait? The first thing to remember is you're not alone. Scams like this rely on a certain degree of embarrassment and shame from their victims so they don't report it when it happens. "Because I have no ability to help to pay for it, either. So if I hear of any programs that can help her to reduce the debt, that's what grabbed my attention," she said.

 

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