CLEVELAND — Millions of Americans are getting ready to begin paying back their student loans this fall.
The pause on payments officially ends in October.
Crooks are taking notice and working to scam anyone in their path. They're capitalizing on confusion, according to the Better Business Bureau.
It comes at a critical time, as reputable agencies and loan providers are actually sending out notices to graduates.
In the meantime, the scammers are doing the same thing.
Their stuff looks nearly identical.
Officials say you need to be extra cautious and double-check the websites and e-mail accounts.
"Be very skeptical of any program, any person who reaches out to you claiming that you're entitled to some sort of program," Sue McConnell, President and CEO of Better Business Bureau serving Greater Cleveland, said.
Those programs no longer exist.
The Better Business Bureau reports scammers are reaching out on social media and via e-mail.
They're offering unrealistic dollar amounts in debt forgiveness.
Both the BBB and Department of Education are on high alert and warning that borrowers should be extra cautious and to look out for the following:
1. Never agree to pay an upfront cost or monthly fee to reduce your payments. It's bogus and never an option.
However, with reputable loan providers—you can actually work with them on the amount and make changes based on your income.
2. Never believe total loan forgiveness is an option.
Scammers will claim it's possible by providing your social security number and bank information. This ultimately leads to a loss of funds and an identity theft case.
3. Never give out your federal student aid id or password.
This has the same power as your legal written signature, according to McConnell. The U.S. Department of Education says the sham company or scammer can do whatever they want and make decisions without their consent. It's very challenging to regain control of these items.
4. Deal directly with your loan service provider.
They will be able to provide you with any kind of loan assistance. They can lower payments, look into supplemental programs and work with you on adjustments.
"If you are solicited by e-mail, text, or phone call and it is sending you off to a website that's not a .gov website claiming that you need to provide information or you need to pay a fee. That is a big red flag," McConnell said.
5. Finally, pay attention to the request for payment.
If you're being asked to pay upfront in cash or via Venmo or Ca$h App style programs, it's a scam.
If you do fall for it and pay with a credit or debit card—your bank can dispute those charges.
With cash payments though—you're totally out of luck.
McConnell says if the debt relief seems too good to be true—it probably is!
She says it's important to remember your loan service provider is there to help—so reach out directly to them and use the contact information on their individual sites.
If you want to verify the providers or businesses claiming they are helping you, go directly to the Better Business Bureau's website which can be found here.
