Mid-Valley Scam Warning: Scammers Prey on Student Loans | Local

College is an expensive investment. But you already know that. Just take a look at the number of Americans who are in debt thanks to the large amount of student loans they have accumulated.

Because of the pandemic, the federal government has temporarily suspended the repayment of these loans. For the time being, this break is valid until May 1st. But it doesn’t matter when that pause finally expires — scammers take advantage of anxious, indebted citizens.

In this week’s Mitte Valley Fraud Alert, we talk about all things student loan scams. In a March issue of the FBI Oregon Tech Tuesday segment, the agency offered some tips to avoid becoming a victim of this particular type of scam.

Crooks and scammers will try to contact you via SMS, email or call/voicemail in order to trick you into revealing sensitive information. They’ll probably tell you about the quick and easy ways you can consolidate or eliminate your student loans.

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For example, a scammer might say, “This is (insert name) from Student Loan Assistance. Our records indicate that you were eligible for a loan forgiveness program but never completed the required documents. If you’d like to proceed with this application, we need to speak to you today. Please call us.”

If there’s one thing I hope we’ve all learned from reading these scam alerts, it’s this: be wary of messages from unknown senders asking for personal and/or financial information.

If you’re unsure whether or not a message is legitimate, consider this advice from the Federal Trade Commission:

  • Never pay in advance. It is illegal for companies to charge you before helping you. Remember that you never have to pay to get support from the Department of Education.
  • Never give your Federal Student Aid ID, social security number, or other personal information to anyone who contacts you. Scammers can use this information to log into your account, change your contact information, and/or redirect your payments to them.
  • If in doubt, contact your student loan administrator directly.
  • Don’t sign up for quick lending. Bad actors might say they can get rid of their loans before they even know the details of your situation. You could also promise a loan forgiveness program—one you don’t qualify for.
  • Scammers often use fake seals and logos to trick people into believing the message is credible. They promise special access to repayment plans, new federal loan consolidations, or loan forgiveness programs.
  • If you have federal student loans, contact the Department of Education directly at www.StudentAid.gov.

Debt can be a heavy burden, and there are many people who simply follow orders when it comes to financial matters. After all, you certainly don’t want to get into legal trouble. But it is necessary to step back and look at the situation from all angles before divulging your crucial information.

No one wants to fall victim to a scam scheme, so as always, exercise caution when dealing with money matters.

If you have been the victim of student loan fraud, report it to the FTC at www.ReportFraud.ftc.gov.

Maddie Pfeifer covers public safety for Mid-Valley Media. She can be contacted at 541-812-6091 or [email protected]. Follow her on Twitter via @maddiepfeifer_

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