ALBANY, NY (NEWS10) – If you get a call or letter about canceling your student loans, it might be too good to be true. Student loan cancellation scams are on the rise. With federal student loan payments on hold until next year, some companies claim to be working on behalf of the United States Department of Education, offering to eliminate student loan debt.
Since March 2020, there have been calls for most, if not all, federal student loans to be canceled. And, in the midst of it all, there are real companies claiming they can help you get rid of your student loan debt.
Which sounds good if you’re struggling with your loan payments, but Leslie Silva, partner at Tully Rinckey, says it’s all a trap. “Whoever your loan officer is, they won’t call you to offer anything. You have to go get it from them. If they call you and ask for information, don’t give it to them. It’s not legitimate, ”says Silva.
Most of the companies that call people target young adults with and in some cases without student loans. If you’ve ended up falling victim to one of these scams, Silva says there are a few things you need to do.
“You want to contact your bank first, contact your credit card company, contact a wire transfer company and see if they’ll refund that money to you to reverse that transfer,” says Silva. Silva also says to contact the Federal Trade Commission and file a complaint. The FTC will investigate the complaint and potentially take legal action against any fraudulent business.