Congratulations to this year’s college graduates. We know they are getting ready to start their new lives and it can be a big transition that includes several significant changes. Grads may be moving to a new city, finding a new place to live, or searching for a new job. Graduation also often means new financial responsibilities, such as starting payments on student loans.
As college graduates navigate these many life changes, BBB has found that scammers are eager to exploit their inexperience. Here are some tips to help new grads stay aware of the common scams to avoid:
Know the terms of your student loans: One of the most common ways scammers target college graduates is with fake loan forgiveness opportunities. These can come in the form of unsolicited emails, phone calls, or text messages offering to qualify the graduate for lowered payments through a debt forgiveness program. They’ll ask for a form to be completed and collect a fee for the company’s services.
Some of these companies may exist, but too often BBB finds that advertised services can come with false claims and incomplete information. Other companies are fakes that are looking for ways to collect personal information and money. Your BBB encourages you to visit StudentAid.gov to learn more about student loan forgiveness, as well as federal student loan repayment options. Student loans can be forgiven only under specific circumstances, so you’ll want to contact your loan servicer to determine options that are available to you. They’ll assist you at no charge.
Scammers may also contact college grads regarding the student loan repayment hiatus in response to COVID-19. They may claim that to take advantage of the program, you must complete a form or pay a fee. However, according to the US Department of Education’s Federal Student Aid division, the student loan payment pause has been extended until the division is permitted to implement the debt relief program or litigation is resolved. The Federal Student Aid division states that they will notify borrowers before any payments would restart. You can learn more at https://studentaid.gov/announcements-events/covid-19.