People seeking student loan forgiveness are becoming easy targets for scammers who promise to wipe out their debts in exchange for processing fees and upfront payments. The Federal Trade Commission calls it a crime, and it adds that this type of scam is increasing at an alarming rate.“I just want my refund,” complained Celina Leung.Leung admitted she was desperate and struggling financially. She owed about $18,000 from her art school degree. She was excited when President Joe Biden announced loan forgiveness.Criminals are also excited to see a prime opportunity to rip off borrowers. Some advertise offers to cancel loan payments with just a small investment from the borrower. They promise a big payout would follow, but it never happens.Leung paid about $145 before realizing she’d been taken.“It makes me really upset because a lot of us fall for this like they are legit, and it’s like if we don’t do due diligence, like background checks, we’re going to get screwed over,” Leung said.Gabriella Melciorri was almost persuaded during a phone call to pay money upfront to have her $40,000 debt wiped out, but she checked with her lender to learn the truth.“It’s really disheartening and knowing these types of scams exist and that so many young people are vulnerable to this,” Melciorri said. These student loan servicing fraudsters have a couple of different approaches.Some of them call students on the phone to make their pitches, while others email or send mail with phony documents bearing real loan servicing company logos to make it look legit.New grads have a lot to worry about, especially with commencements this month. Elly Haddad is staring at a $50,000 loan for grad school and isn’t expecting any relief.“I don’t like the scammers, of course, but I do think people need to be more educated on who they are talking to and when they’re talking to them. Right? No one is going to offer you $50,000 out of nowhere, right?” Haddad said.Carlton Mosley, an attorney with the Federal Trade Commission, said if you suspect student loan forgiveness fraud, you should follow his advice:Visit StudentAid.Gov to verify that the inquiry is legitimate, contact your student loan-serving company to make them aware of the inquiry, and file a complaint at ReportFraud.FTC.Gov. “This sort of thing happens every single day,” Mosley said.Reporting fraud gives those with student loans a chance to get some of their stolen money, back.In recent months, the government has won settlements against companies, including repayments to at least $16 million borrowers. If you have been contacted by someone offering to erase your student loan debt, please contact us here at WESH 2 News to share your story, via email, at gfox@hearst.com
People seeking student loan forgiveness are becoming easy targets for scammers who promise to wipe out their debts in exchange for processing fees and upfront payments.
The Federal Trade Commission calls it a crime, and it adds that this type of scam is increasing at an alarming rate.
“I just want my refund,” complained Celina Leung.
Leung admitted she was desperate and struggling financially. She owed about $18,000 from her art school degree. She was excited when President Joe Biden announced loan forgiveness.
Criminals are also excited to see a prime opportunity to rip off borrowers. Some advertise offers to cancel loan payments with just a small investment from the borrower.
They promise a big payout would follow, but it never happens.
Leung paid about $145 before realizing she’d been taken.
“It makes me really upset because a lot of us fall for this like they are legit, and it’s like if we don’t do due diligence, like background checks, we’re going to get screwed over,” Leung said.
Gabriella Melciorri was almost persuaded during a phone call to pay money upfront to have her $40,000 debt wiped out, but she checked with her lender to learn the truth.
“It’s really disheartening and knowing these types of scams exist and that so many young people are vulnerable to this,” Melciorri said.
These student loan servicing fraudsters have a couple of different approaches.
Some of them call students on the phone to make their pitches, while others email or send mail with phony documents bearing real loan servicing company logos to make it look legit.
New grads have a lot to worry about, especially with commencements this month. Elly Haddad is staring at a $50,000 loan for grad school and isn’t expecting any relief.
“I don’t like the scammers, of course, but I do think people need to be more educated on who they are talking to and when they’re talking to them. Right? No one is going to offer you $50,000 out of nowhere, right?” Haddad said.
Carlton Mosley, an attorney with the Federal Trade Commission, said if you suspect student loan forgiveness fraud, you should follow his advice:
Visit StudentAid.Gov to verify that the inquiry is legitimate, contact your student loan-serving company to make them aware of the inquiry, and file a complaint at ReportFraud.FTC.Gov.
“This sort of thing happens every single day,” Mosley said.
Reporting fraud gives those with student loans a chance to get some of their stolen money, back.
In recent months, the government has won settlements against companies, including repayments to at least $16 million borrowers.
If you have been contacted by someone offering to erase your student loan debt, please contact us here at WESH 2 News to share your story, via email, at gfox@hearst.com
