Be extremely cautious about anyone who promises total loan cancellation or guarantees quick loan cancellation.
GREENSBORO, NC – The pandemic is responsible for a lot of confusion, particularly with education loan policies and also the chance of debt forgiveness. North Carolina Attorney General Josh Stein said criminals are using your confusion and stress to try and trick you into falling for education loan scams. He joined us on 2 Really wants to Know to talk about some tips for avoiding common scams.
First, continually be skeptical. Remember, whether it sounds too good to be true, it almost always is. Be extremely cautious about anyone who promises total loan cancellation or guarantees quick loan cancellation. Most loan cancellation programs are depending on a certain repayment amount or perhaps a certain number of years of labor inside your chosen field, and you should speak directly with your loan officer to know your choices.
Also, beware of people who ask you for upfront fees to help you pay off has given. Under North Carolina law, it is illegal for anybody to charge an upfront fee to change borrowers' debts. You do not have to pay anyone to receive student debt settlement assistance. Instead, go to the US Department of Education's website, www.studentaid.gov, for information about how to contact your merchandise agent to modify your loans.
If you receive an e-mail or phone call about education loan debt cancellation, don't provide any private information. Your loan officer and education department won't ask you for private information over the telephone or email. If you've received an e-mail, make sure it's sent from a previous address ending in “.gov” or from their email you know is your loan officer. If you've any doubts, contact your loan manager directly.
A scammer could also attempt to pressure you into thinking you have to act fast, otherwise you won't be eligible for a reduced payment or mortgage loan modification. Legitimate businesses don't use these urgent and aggressive techniques.
Think very carefully before utilizing a debt settlement company. Almost all student loan debt relief companies keep your money like a fee, rather than making your payments. In just about all situations, you can modify your loans yourself by contacting your loan manager or even the education department.
Also, never provide your Federal Student Aid ID (FSA ID) password to anyone. This is personal data that neither the training department nor your loan officer will request. If you are required for your FSA ID password, it is usually a scam – do not share it.
If you think you've been a target of these scams, sign in and change your FSA ID. Immediately contact your student loan manager to see them and discover the status of your loan. Contact your bank or credit card company to suspend all payments towards the education loan debt relief company. And contact the lawyer general's office at ncdoj.gov/complaint or 1-877-5-NO-SCAM to file a complaint. You can also file a complaint with the Ftc (FTC) and alert them you have been scammed.