The state’s consumer protection bureau is alerting fake student loan calls borrowers to be wary of scams targeting those repaying their loans.
Fake student loan calls are becoming a growing concern as the September 1 deadline for the restart of student loan interest approaches, with payments becoming due in October
Michelle Reinen from the Department of Agriculture, Trade and Consumer Protection (DATCP) emphasized that prior to the pandemic, fake student loan calls were widespread, and unfortunately, they are anticipated to resurge now.
To protect yourself, Reinen stressed the importance of being prepared for repayments. First, borrowers should identify their loan servicer by checking their Federal Student Aid (FSA) account dashboard. Once the servicer is identified, borrowers should update their contact information to receive direct and timely updates from them. It is crucial to enroll in a repayment plan and seek reliable resources for information rather than passively waiting for it.
Reinen provided essential tips to avoid falling victim to fake student loan calls
She warned that the Department of Education or a loan servicer will never call borrowers, and no one should ever request their FSA I.D. log-in information. Sharing this information with fake student loan calls scammers could lead to identity theft and a loss of communication with the legitimate loan servicer. Additionally, fake student loan calls offering loans or debt forgiveness should be treated as fake, even if they claim affiliation with the Department of Education.
For assistance, borrowers are encouraged to contact the U.S. Department of Education directly. In Wisconsin, they can also reach out to the Student Loan Help Hotline at 833-589-0750. By staying vigilant and following these precautions, borrowers can safeguard themselves against falling prey to fake student loan calls and scams.