Federal student loan repayments resume next May – here are tips to avoid scams
DES MOINES, Iowa – Although President Joe Biden extended the student loan repayment in late December, scammers are targeting unsuspecting borrowers.
Mary Jo Terry, the managing partner of Yrefy, a company specializing in private loan refinancing programs, offered some tips on getting ready to pay off your loans without getting ripped off. Here are three tips.
- Make sure you know who your loan manager is. According to the Consumer Financial Protection Bureau, your loan officers keep track of your loan payments, manage your escrow account, and keep tabs on principal and interest paid. If you are unsure who your loan service provider is, you should visit www.studentaid.gov.
- Beware of certain loan consolidations. Any loan consolidation company that tries to collect payments is not legitimate. If you want to consolidate your loans, you can do so through a federal program.
- Do not divulge personal information. Your loan officer should not ask for any personal information. For example, if a loan officer asks for your social security number, address, etc., that’s a red flag. Terry says your loan officer should have all of your information.
However, if you are the victim of a student loan scam, Terry advises you to act now.
“First, I would go to studentaid.gov and file a complaint. Then I would also go to your loan officer and file a complaint, ”said Terry. “Then last but not least, if you’re completely concerned, you can go to TransUnion Experian, Equifax, and put a fraud alert on your account. The whole point of the fraud alert is really to make sure that no one can open credit without someone actually telling you. “
Terry also says borrowers should start planning how to pay off their student loans and start contacting their loan officer.
The extension of the student loan ends on May 1, 2022.
Suggest a correction