How you can protect yourself from student loan scammers

NOW: How you can protect yourself from student loan scammers


SOUTH BEND, Ind. --- Student loan borrowers have a few extra months to start paying up after the Biden administration announced another extension just several weeks ago.

The extension means you won’t have to start paying out until May 1st, but even with this longer payment break experts say to keep a lookout for scammers.

Text messages, emails, and phone calls -- they’re something we receive every day, but this time of year the Better Business Bureau says to keep a lookout for student loan scams.

“When you get that email or that phone call or that text message don’t take what it says at face value. Don’t click on any links or call any phone numbers that are listed," said Katie Grevious, Communications Specialist for the Better Business Bureau.

Grevious says scammers are taking advantage trying to confuse people over repayments. If you receive notice your interest rates during the 90-day extension have gone up, she recommends contacting your loan provider directly and researching the lender — instead of just falling victim to the red flags.

“You might get someone who’s just trying to get your information and then you may also get somebody who’s posing as a company that’s really just going to try to suck more money out of you," said Grevious.

According to Andrew Pentis Senior Writer at Student Loan Hero, the state of Indiana currently has almost 900,000 borrowers for student loans.

He says while the new extension has increased scam attempts its helped many Hoosiers save money during the pandemic.

Despite this benefit, he warns this most likely will be the last extension from the White House.

“They did not use the word final in this announcement, but I still think it’s unlikely that the moratorium would be extended yet again past may," said Pentis.

If you do fall victim to student loan scams you are encouraged to report them on the BBB’s website.

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