Many students recently graduated from college and those students are now preparing to embark on a new chapter in their lives. This means the student loan repayment process may also start up soon. The Better Business Bureau Serving Western Michigan is offering tips on avoiding loan forgiveness scams.
The Better Business Bureau Serving Western Michigan says scammers are taking advantage of recent changes to student loan repayment programs in order to confuse borrowers.
Currently payments are paused on most federal loans through Aug. 31, 2022, and no interest is accruing. But that doesn't mean that scams are on pause. The BBB encourages graduates to carefully research trustworthy sources related to federal repayment plans before giving any personal information.
Watch out for companies promising to reduce debt by lowering payments through enrollment in student loan forgiveness or other programs. They may also falsely promise to apply monthly payments to your student loans and to improve credit scores- all you have to do is pay a small fee so they can negotiate with the lender on your behalf.
The BBB says to keep all of your personal information private and never give it to an unsolicited source.
Additional tips from the BBB to protect yourself from student loan scammers include finding a reliable source, research the lender, watch for red flags and watch out for pressure tactics.
You can find more information at bbb.org
