FRANKORT, Ky. (WBKO) – Attorney General Daniel Cameron today issued a consumer alert warning Kentuckians of possible student loan scams following beta testing of the federal student debt relief application.
Kentuckians should report suspected scams to ag.ky.gov/scams.
“In light of the beta testing rollout of the federal student loan debt relief application, Kentuckians should watch out for scammers posing as the Department of Education or a loan provider,” said Attorney General Cameron. “In these schemes, the scammer may offer help and ask the consumer to complete a fake debt relief application, which allows the scammer to access their personal funds or personally identifiable information that could be used for identity theft.”
Student loan scammers may contact consumers claiming to be affiliated with the Department of Education or a loan servicing provider and offer specialized repayment plans, access to quicker loan forgiveness, or assistance with filling out the student loan debt relief application.
To provide this help, scammers may direct consumers to complete a fake debt relief application or confirm personal loan information.
These counterfeit applications may include direct deposit or power of attorney forms that allow scammers to access your bank account.
In these schemes, scammers may also collect personal information to carry out identity theft.
To avoid becoming a victim of a student loan scam, the Attorney General’s Office encourages Kentuckians to:
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