More than 43 million people, including 8.8 million ages 50 and older, have outstanding federal student loans, with the average debt burden topping $37,000, according to data from the U.S. Department of Education’s Federal Student Aid office (FSA).
At the same time, the student debt landscape is undergoing big changes, with repayments set to resume August 31 after a more than two-year pandemic moratorium; changing options for federal loan forgiveness; and new payment arrangements for millions of borrowers amid a reshuffle of student loan servicers (companies contracted by the government to manage repayments).
Circumstances like these can breed confusion and financial anxiety, a combination that gets high marks from scammers. They barrage borrowers with robocalls, emails, texts and social media messages touting sketchy strategies to quickly reduce monthly payments or procure loan forgiveness.
Some of these schemes involve sham debt relief companies of the kind that also target people in arrears on mortgages, credit cards or medical bills. Other scammers pose as student loan servicers or representatives of the U.S. Department of Education.
The common thread is that they will solicit an upfront payment or request personal information, like your FSA account credentials or Social Security number, supposedly to secure your…
