Beware of Student Loan Scams

The New York Attorney General is warning New Yorkers about fraudsters taking advantage of the recent changes to the federal student loan repayment programs, leading to new scams targeting student loan borrowers seeking affordable options and financial relief.

Attorney General James urges New Yorkers to follow these tips to protect themselves:

• Remember that federal student loan programs do not cost money. Offers that promise
  to help with your loans for a fee can be misleading.
• Be suspicious of unsolicited telephone calls and emails or any online ads that promise
  complete loan forgiveness or the elimination of debt within a short period of time. No
  person or private company can make these types of guarantees. If it sounds too good
  to be true, it likely is.
• Do not trust companies that create a sense of urgency by claiming that you must act
  within a very short period of time to obtain student loan relief. Student loan programs
  do not work this way.
• Do not sign a power of attorney naming someone you do not know and trust. Student
  loan programs do not need your power of attorney to provide payment relief or enroll
  you in a payment plan.
• Be wary of any company that claims affiliation with the federal government.
• Never give your Federal Student Aid identification or login credentials to anyone. The
  Department of Education or the loan servicer for your loan will never ask you for your
  login credentials. Providing this sensitive information can allow scammers to gain
  access to your account and change your settings and personal information.
• Do not pay any upfront fees to a company that solicits you for student-loan-related
  services. It is a violation of New York law to charge upfront fees for such services, and
  violations should be reported to OAG.

Any person encountering a scam related to student loans should New York Attorney General’s office. make a complaint with the New York Attorney General’s Office