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The Biden administration in December again extended the moratorium on student loan payments and interest, meaning most people with federal loans are off the hook until May 1.
In the meantime, however, confusion about the pause, continued calls for broad-based forgiveness and changes to other aspects of student loan debt repayment give scammers increased opportunities to go after borrowers.
Many borrowers may be susceptible to scams due to the pandemic, which has hurt finances for millions. Most student loan borrowers said before the moratorium was extended that they were not prepared to resume payments even two years into the pandemic.
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“Scammers really prey on the financially vulnerable, and so with the pandemic, many people have been struggling financially and they are looking for financial relief,” said Kristen Evans, chief of the students and young consumers section at the Consumer Financial Protection Bureau. “This just creates the perfect breeding ground for scammers to take advantage of people.”
Changes to student loan servicers
Adding to potential confusion is that student loan servicers are set to change for some 16 million borrowers in the coming years.
“The uncertainty around who is my loan servicer does leave a…
