Oregon State Warns About Student Loan Fraud. How Do Fraudsters Cheat People?

People are being cautioned about the rise in student loan scams by the Oregon Division of Financial Regulation (DFR).

Scammers are inundating consumers with false offers for loan forgiveness and refinancing as a result of recent changes to federal student loan programs.

The DFR advises individuals to disregard calls, emails, social media posts, and other unsolicited solicitations from anyone who make claims that they can help you renegotiate your loan or get your student loans forgiven more quickly. The DFR advice warns against accepting these unexpected offers without first verifying their validity. “There’s a chance it’s a con.”

Phrases like “pre-enrollment for full loan forgiveness” or “you must apply within the next 24 hours” may be used by con artists.

Don’t fall for these frauds, warned DFR Administrator TK Keen because there are no expenses involved in applying for student loan forgiveness. Everyone will have equal opportunities, and there is no shortcut to having loans forgiven more quickly.

In addition to the one-time cancellation under the Biden Administration, there have been recent and planned changes to federal student loans and loan forgiveness. According to Keen, these developments will sadly attract predators who will prey on those who are in need of assistance.

Oregon State Warns About Student Loan Fraud
Oregon State Warns About Student Loan Fraud

Oregon Student Loan Ombudsman Lane Thompson stated that the relief package announced by President Biden does not yet have an application ready. By visiting the U.S. Department of Education website and selecting the “NEWII Federal Student Loan Borrower Updates” checkbox, users can be informed when the program is live.

As a reminder, Lane says that if a website’s domain ends in.gov, it is not the federal government’s official website. The three main warning indicators are when they claim there is an urgency, a guarantee, or any secrecy.

Scammers emerge from hiding whenever the Department of Education announces modifications to the student loan program, according to Thompson. The adage “If it appears too good to be true, it probably is” is still valid.

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