Beware of the potential student loan scam as it will set to begin again on September 1, to avoid getting tricked by scammers, according to the Tennessee Attorney General’s Consumer Protection Division.
Student Loan Scams: Be Vigilant As The Student Loan Repayments Start On September 1 (PHOTO: WATE)
Student Loan Scams
The Department of Education announced earlier this month that those students who qualified for student loans will be automatically discharged and this initiative is different than the loan forgiveness plan proposed by President Joe Biden which was not supported and struck down by the Supreme Court this term, the AG’s office said.
However, Fox61 News reported that with this new student loan plan, the Department of Education will personally contact each borrower who qualifies directly.
This begins on September 1, 2023, interest on federal student loans will once again begin to accrue, and monthly payments on those loans will now be due in October.
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Here’s How To Prevent Potential Student Loan Scam
To prevent being tricked by scammers the Consumer Protection Division offers tips for everyone’s awareness.
- Identify Your Loan Service Provider
Most student loan scams will lure you that they are working for the Education Department or a loan servicer. Hence, you have to find out if a company is legitimate before offering any money or providing your personal information.
- Communicate With Your Loan Servicer Provider
Scammers usually inform you to cut your communications with your loan servicer and instead rely on them. They may direct you to stop making payments. If this happens to you do not listen to that advice and communicate right away to your loan servicer and continue to make payments.
- Be Careful Of Any Company That Pressures You To Sign Up Right Away
Scammers continually pressure you to decide right away. Most government-offered programs will not involve any pressure on you.
- Don’t Sign A Power Of Attorney
Power of attorney will allow a company to interact with your student loan servicer on your behalf. They can transfer important powers, including the authority to make financial decisions for you.
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