Student loan repayments will begin on September 1st, and the Tennessee Attorney General’s Consumer Protection Division has issued an advisory, warning students to be extra cautious because some companies offer products or services that are too good to be true, as these are more likely frauds.
Beware of the Scammers and Be Vigilant at all Times (Photo: RCB Bank)
Scammer Alert
According to an article released by WKRN.Com, the U.S. as stated by the Department of Education, the student loan proposal will contact debtors who qualify directly. They emphasized that the concept differs significantly from President Joe Biden’s proposed loan forgiveness plan in that it would immediately discharge certain qualifying loans.
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Tennessee Attorney General’s Consumer Protection Division Tips to Avoid Scammers
Tennessee Attorney General’s Consumer Protection Division stated that knowing your loan servicer is important in order to be protected from these scammers, as scammers will pretend to provide service to the Department of Education; there are instances where scammers will push you to cut off communications with the loan services and instead rely on them. It is best not to follow their advice because it is a massive fraud.
Furthermore, you are not required to pay anyone to manage your student loans, loan services aren’t permitted to charge you for applying for debt forgiveness, income-driven repayment (IDR), deferment or forbearance, loan consolidation, or any other paperwork. Do not provide the scammer with any personal information, and alert the authorities immediately.
Do not provide the fraudster any personal information, and you must call your loan servicer to take action. Even if someone calls and has accurate personal information about you and your loan, contact your loan servicer directly. Don’t give them any more information until you’ve confirmed the caller’s identity. You can ask your loan servicer if you need to take any action by contacting them directly. Be cautious if the company puts pressure on you to make a decision, as most government-sponsored programs give their consumers time to make their own decisions. It is critical to remember that you should never sign a power of attorney permitting a corporation to communicate with your student loan.
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