Be aware of student loan debt scams
With the extension of the student loan repayment pause until August 31st, that has given borrowers more time to prepare for their monthly payments.
However, it has also opened up opportunities for scammers.
Student loan scams are on the rise amid confusion among borrowers about when they’ll be paying student loans again and whether or not their debt will be canceled before August 31st.
Mary Jo Terry, managing partner at Yrefy and student loan expert, talked about what borrowers can look for in potential student loan scams. “The biggest scams that are going on right now is ‘you are on auto debit, give me your updated bank account information.’ So, make sure when you go on studentaid.gov and check your loan services, whether you are on auto debit or not, don’t give out your bank account information. If somebody is calling from your loan services, they already have your personal information, they shouldn’t be asking you to give it.”
In Mississippi alone, borrowers have racked up $16 billion of student loan debt.
