Q: As a parent, can BBB assist my understanding on Student Loan forgiveness and scams targeting this financial scenario?
A: Navient has more than 10 million student loan clients and recently settled a student loan forgiveness lawsuit. The results of the settlement won’t affect what individual borrowers owe. However, scammers were quick to notice this news item and are now targeting borrowers with false claims of debt forgiveness – for a fee. Here’s what you need to know.
How the scam works
You receive a call from a person claiming to represent Navient, a student loan servicing company. They explain that as a part of a lawsuit settlement, your student debt is partially or completely forgiven. Of course, you’ll need to confirm your personal information and pay a fee to “transfer” the debt from Navient to “the Department of Education” or another official-sounding organization. These claims are based on actual procedures you may in fact qualify for, but this unsolicited caller is not working in an official capacity or related to any of the organizations cited in the call.
The caller explains the fees necessary, usually on a monthly basis, then request either debit or credit card information. Then, they will begin making withdrawals according to the payment plan you agreed to. Many consumers notice something is wrong when their Navient loan payment continues to be required, even after setting up payments with the new company.