Millions of student loan borrowers are now in default after the federal government resumed collections on delinquent loans in May. Those borrowers are now caught trying to figure out how to make payments after more than 5 years since collections were initially frozen. Meanwhile, all borrowers have to contend with a new wave of their age-old frustration: student loan scams. Borrowers in good standing, too, can look forward to calls, emails, and paper mail alleging that they are in default. Sometimes scammers claim to be making collections, other times they promise that they’re able to help.
Student loan scams are, unfortunately, nothing new. With the hold on collections since the emergency Covid-19 forbearance in 2020, however, we haven’t seen scams around default for a number of years. Beware of anyone who attempts to have you pay them immediately, or through an unfamiliar website. Remember that anyone can create fake pages and use logos or branding that look authentic. All federal student loan servicers should now have a “.studentaid.gov” web address now. If you get an official looking email, but from an address you don’t recognize, don’t click any links. Go directly to the “.studentaid.gov” address that you know (and hopefully have bookmarked in your browser!) to check.
If someone cold-calls you about help for your student loans in default, be suspicious. Likewise if they ask you for sensitive information like your social security number or login credentials for your loan servicer or studentaid.gov—no one but you needs to be able to log in to your account. Navigate, for example, will have you download a simple Text file, and that’s all we need to see! Beware of any offers to help take advantage of time sensitive programs, or that require you to make an immediate decision. There are no federal loan programs right now that have an application deadline, and you should never have to make a decision about your loans without a chance to sleep on it!
If you’re in default, or worried about it, give us a call. Talk to your trusted student loan experts. We’ll help you sort through fact from fiction and help you find a path forward and get you back on track.
