The Pennsylvania Higher Education Assistance Agency is cautioning borrowers to be aware of scams that try to take advantage of confusion surrounding the debt relief plan to forgive up to $20,000 in federal student loans.
“There has been a great deal of uncertainty since the announcement of the administration’s student loan forgiveness plan as details continue to emerge,” state Rep. Mike Peifer, who also is the agency’s board chairman, said in a release. “This creates ideal conditions for unscrupulous scammers to capitalize on the most vulnerable — those who can least afford to be the financial victims as they are already struggling to manage their student loan debt.”
The Consumer Financial Protection Bureau has received complaints from borrowers about companies promising to deliver student loan services in exchange for fees. Borrowers often believed they were talking to their loan servicer or a company that was acting on behalf of the U.S. Department of Education, officials said.
“Scammers have become more sophisticated in recent years, using highly sophisticated methods to lure unsuspecting borrowers into profit schemes,” said Sen. Wayne Fontana, board vice chairman. “The most effective way to avoid becoming the victim of a scam is to remain vigilant and knowledgeable, especially when asked by anyone to provide personal information or while engaging in any financial transaction.”
Scammers use various modes of communication, including social…
