Scammers target student-loan borrowers with fraudulent debt-relief schemes
Updated
Updated · MarketWatch · Apr 30
Scammers target student-loan borrowers with fraudulent debt-relief schemes
13 articles · Updated · MarketWatch · Apr 30
The Hechinger Report found more than two dozen companies charging hundreds of dollars for bogus help as millions face the SAVE plan's end, a new repayment plan and other Education Department changes.
Experts say fraudsters exploit misinformation, fake government-branded programmes and requests for passwords or verification codes, sometimes locking borrowers out until missed payments push them into default.
The FTC last year sent $256,900 in refunds to victims of one scheme, while advocates say servicer failures and Education Department staffing cuts have deepened confusion borrowers should navigate through free official channels.
How did a government efficiency initiative end up fueling a nationwide wave of scams targeting student loan borrowers?
Is the only real way to stop student loan scams to radically simplify the entire federal aid system?
With the SAVE plan ending, are you prepared for how the new system will calculate your monthly loan payment?