"Whenever there's confusion in the marketplace, that's when the criminal fraudsters get active," says Clayton LiaBraaten, senior executive advisor at Truecaller, an app that blocks spam calls.
What to watch out forStudent loan scams vary widely, but they often contain a few key ingredients. Here are some common red flags. It’s always free to enroll in or benefit from any legitimate federal student loan relief, such as income-driven repayment plans, borrower defense to repayment, Public Service Loan Forgiveness and the IDR account adjustment.
"Legitimate loan forgiveness programs usually have these strict eligibility criteria, so any sort of instant forgiveness is a red flag," says Ally Armeson, program director of the nonprofit Cybercrime Support Network. Scammers see an opportunity with people panicking around repayment and try to position themselves as saviors, she says.
"Beware of unsolicited calls or communication," Armeson says."That is the number-one way that a scammer will weasel into your life." "If someone says they are from a specific agency, department or loan servicer, just say, 'you know what, let me hang up and do my research, and I'll go from there by myself,'" Armeson says.Use strong passwords and enable two-factor authentication on all of your online financial accounts, including your StudentAid.Gov and student loan servicer accounts, LiaBraaten says.