Posted 10/20/23

Student Debt Relief scams are increasing as the date approaches for borrowers to restart payment on their student loans after more than a three-year pause.

Consumer protection advocates say the recent student debt relief efforts, the subsequent halting of those policies by the courts, and the restart of student loan payments have bred confusion that allow companies to take advantage of borrowers.

About 44 million people owing more than $1.7 trillion the third highest consumer debt in the U.S. the appetite for relief is great and makes anyone with a loan easy prey for scammers.

Many of the debt scams start with a telemarketing call where borrowers are promised debt relief if they pay a regular fee.

The number of complaints coming to the FTC about student debt relief scams has steadily risen in the past few months as the restart of student loan payments approaches.

The best tool against these scams, as always is diligence and common sense. There’s no forgiveness plans in place, and payments on School Loans will start again soon.

Use your smarts, research the payment options, and be very cautious.