The pause on federal student loan payments is set to expire at the end of summer. While it may be good news for borrowers, it’s creating opportunities for scammers.
PENNSYLVANIA, USA — Federal student loans for more than 43 million borrowers across the U.S. are now frozen until August 31st.
“The great news is no interest has been accruing on those accounts,” said Mary Jo Terry, managing partner at Yrefy. “The bad news is it’s been two and a half years”
Since the start of the COVID-19 pandemic, both the Trump and Biden Administrations have extended the moratorium on loan payments multiple times.
While it may be a reprieve for many, it’s also spelling trouble.
“What we’re seeing is more people are attempting to scam federal borrowers and also contacting people that don’t even have student loans,” said Terry.
Terry has worked in the education industry for over two decades.
She says scammers are using phone, text, and email to try to trick borrowers.
“They’re trying to say ‘Hey give me money, give me $399, and I’ll get your loans forgiven, or I’ll get your loans canceled,'” she explained.
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