Student loan scams and how to avoid them
Your first student loan can be intimidating—How do you make payments? Should you consolidate? Do you qualify for forgiveness?
Scammers know that this information is confusing for first-time money borrowers, and they take advantage of the situation to trick you into giving up personal information or even money on the internet.
Some websites offer to consolidate or lower your monthly student loan payments, get your loans out of default, or determine if you’re eligible for loan forgiveness for a fee. What theses scammers hope you don’t know is that the Department of Education offers these services free of charge. The truth is that companies that promise to erase your debt are trying to scam you—and the consequences could be costlier than the interest on the loan in the first place.
These scams don’t just pose a financial threat, they may put you at risk for identity fraud or other leaks of your personal information. Every time you provide your info to an unsecure or untrusted identity, there is no knowing how it is being used, who it is being sold to, or what companies have access to it.
If a borrower asks for your federal student ID number or asks for money to complete the service, you can be sure that it’s a scam. Your most reliable information for paying back your loan will come from your loan provider, the Department of Education, and the Wayne State University Financial Aid office.
If you are receiving these kinds of scam emails to your Wayne State account, please forward them to email@example.com and mark them as junk. The better these types of messages are reported, the better C&IT can protect the Wayne State community.
The Department of Education does offer legitimate loan forgiveness and reduction, but there is a list of qualifications you must meet. For more information, contact the Department of Educationdirectly.
Here are some additional resources to help you identify legitimate lenders and scams: