In light of the recent Supreme Court ruling regarding the Federal Student Loan Debt Cancellation Program, the Pennsylvania Higher Education Assistance Agency (PHEAA) is cautioning borrowers to be aware of an increase in harmful financial aid scams that could expose them to identity theft and significant financial loss.
Last year, scammers stole an estimated $5 billion from Americans in student loan-related scams, according to a recent report. Scammers use multiple modes of communication to reach borrowers, including social media, text messages, emails and phone calls.
Scammers are also very skilled at posing as government representatives and may even have look-alike government websites and logos to trick unsuspecting victims. Borrowers are encouraged to visit the U.S. Department of Education’s website, StudentAid.gov, for information about all available student loan debt relief and repayment plans. Borrowers should never pay for a service that is available to them for free.
For a list of red flags you should look for to avoid being scammed and what to do if you become a victim of a scam, click here.
