Watching Your Wallet: student loan scam alert

Published: Sep. 21, 2020 at 10:50 PM EDT
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LANSING, Mich. (WILX) - Like any disaster, COVID-19 has seen its fair share of scams. But, now thieves are targeting the student loan market.

Student loan borrowers have always been targeted for scams and lack of work because of the coronavirus is making it worse.

The longer folks struggle, the more desperate they become and that’s when the fraudsters come into play.

Our partners at the financial site Nerdwallet found there are two main types of student debt scams right now. The first scam is convincing you to pay them to get you into a loan deferment program. Programs like the federal income-driven repayment plan can be accessed for free and don’t require payments to anyone.

The “CARES Act Forgiveness” scam claims to forgive the loan completely in exchange for a payment, which they will quickly run away with. Do your homework to check if these companies are real. Google their names with the word scam and see what you find.

If you’ve fallen victim to these scammers, get a hold of your accounts. Change your passwords and you may need to change the email associated with accounts as well.

It’s important to report the scam to authorities. The Federal Trade Commission, the attorney general and The Consumer Financial Protection Bureau all go after student loan scammers, but they rely on you to alert.

Copyright 2020 WILX. All rights reserved.

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