(WXIN/WTTV) – With collection agencies once again going after student loan debt, it’s important to avoid crooks offering to help you with your loans.
You need to be on the lookout for slick scammers promising a quick fix for your finances, according to the Federal Trade Commission.
Scammers know that people struggling to keep up with payments can get desperate, so they’re quick to offer a helping hand without actually helping anyone.
One of the biggest red flags: having the person offering relief ask for an upfront fee to help you resolve your student loan debt.
The potential pool of victims is large. According to the Federal Reserve, about 42 million Americans owe roughly $1.8 trillion in student loan debt.
Of those, 16% are behind on payments, which means some are desperate for any form of relief.
Scammers fill that void, posing as debt relief companies or government officials promising to help you resolve debts for an upfront fee.
First of all, those fees are illegal—you shouldn’t have to pay anything upfront to help manage a federal student loan.
If you have a private loan, you can go straight to your lender instead of working with someone who reached out to you.
Always be wary of something that sounds too good to be true. If someone promises a quick fix for thousands of dollars in debt, that should set off your internal scam alarm.
Where can you find reputable help?
The best place to start is studentaid.gov. It’s a federal government website where you can manage your loan and find options like loan consolidation or applying for an income-driven repayment plan.
All that information is free. Find more tips for avoiding student loan scams here.
