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Alarming Surge in Student Loan Scams Targets Americans; Biden’s SAVE Plan and Disproportionate Impact on Black Borrowers

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Amidst the impending resumption of student loan payments in October, scammers are intensifying their efforts to exploit borrowers, with more than 350,000 student-loan-related robocalls reported in the last two weeks alone.

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“Scammers seize on chaos and confusion,” John Haraburda, a robocall data expert at TNS, told CBS News. “Right now, you have a lot of activity with the new White House student loan plan, loan payments set to resume in October and the start of the school year.” He emphasized the importance of skepticism, advising consumers to operate under the assumption that “when something sounds too good to be true, it is.

Scammers may also request upfront payments under the guise of facilitating debt relief or charge fees for otherwise free services. As TNS warns, they might also seek private information like Social Security numbers. IdentityIQ, an identity theft protection company, further warns that some fraudsters pose as new student loan servicers, taking advantage of borrowers’ unfamiliarity with recent changes in servicing companies.

Recent data from the Board of Governors of the Federal Reserve System underscores the disproportionate impact of student debt within different communities, with Black borrowers shouldering the largest share of federal student loan debt in 2019, a stark reminder of the unique challenges they face in the current landscape.

 

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