How To Avoid Student Loan Forgiveness Scams

To protect yourself from falling victim to these scams, it is important to recognize how they operate and what warning signs are present. 

• Did they contact you?
  The federal government does not, under any circumstance, call you to discuss your student loans. Any company that calls you promising immediate loan forgiveness, no matter how legitimate they may appear, is a scam.
• Are they asking for a fee?
  Applying for student loan forgiveness is free, so anyone asking for application fees is a red flag. The application is a simple process that you can do on your own. Further, if you receive a call promising to have your loan forgiveness approved for a fee, it is a scam.
• Do they ask you to give personal information?
  Government agencies do not ask for sensitive personal information, especially not over the phone or email. Any company asking for your Social Security Number or Federal Student Aid (FSA) ID is a scam.
• Do you feel pressured?
  Any company using aggressive sales techniques to pressure you into making a decision and disclosing your sensitive personal information is a scam. Scammers know that the more time you have to think about their offers, the more likely you discover that they are not legitimate, so they tend to bombard you with questions to confuse you.
• Are you being asked to sign off on documents or power of attorney?
  Emails asking you to sign off on a document or power of attorney are scams. A power of attorney allows scammers to make decisions on your behalf, speak for you, and change your account information without your knowledge.

If you think you have been scammed, take the following steps immediately.

1. Contact your bank or credit card company immediately
   You need to notify your bank as soon as you become aware of the scam so they can flag your account and investigate all transactions.
2. Contact your loan servicer
   If you feel that your account has been breached, you need to inform your loan servicer immediately so that they can detect suspicious activities before they cause any damage.
3. File a report with the appropriate agencies
   You must report scammers to the proper authorities to prevent them from stealing your identity or scamming another person. You can file a complaint with the Federal Trade Commission (FTC), Consumer Finance Protection Bureau (CFPB), or the state attorney.
4. Freeze your credit report
   When you freeze your credit report, scammers will find it impossible to open an account in your name, even if they have your personal information. To do this, you must contact all three credit bureaus — Equifax, Experian, and Transunion. Make sure you know your passwords to activate your report later on.
5. Change your passwords
   You need to immediately change your password if you disclose any information regarding your student loan account, such as your FSA ID. Avoid using names or birthdays as passwords; make sure it is at least twelve characters and has a mixture of numbers and letters.

Student loan forgiveness programs relieve borrowers of some or all of their repayment obligations; this means that you might not be required to repay part or all of your federal student loans. To be eligible for loan forgiveness, you need to have an annual income that is less than $125,000 or $250,000 per household. You can get between $10,000 and $20,000 in debt forgiveness. There are several federal loan forgiveness programs. Legitimate ones will require you to apply directly at StudentAid.gov and will not ask for your sensitive personal information through phone calls or emails.

You can apply for a student loan forgiveness program by filling out an online form available on StudentAid.gov with the following information:

• Full Name
• Date of birth 
• Social security number 
• Contact information 
• Electronic signature

1. Public Service Loan Forgiveness (PSLF)
2. Income-Driven Repayment Forgiveness
3. Teacher Loan Forgiveness
4. Closed School Discharge
5. Discharge Due to Death
6. Discharge in Bankruptcy
7. Total and Permanent Disability Discharge
8. Perkins Loan Cancellation and Discharge
9. Unpaid Refund Discharge
10. Military Service Loan Forgiveness

Student loan forgiveness scams can be dangerous and should be avoided. It is important to research any offer of student loan forgiveness before signing up for it as there are many fraudulent activities out there aimed at taking advantage of unsuspecting victims. It is also important to consult with a financial professional if you have questions about your student loans or need advice on how to manage them in the most effective way possible. By taking these precautions, you can ensure that your student loan forgiveness experience is a safe and successful one.