Are you repaying education-related loans? According to the Pew Research Center, about one-third of adults under age 30 have student loan debt. You’ve probably seen ads from companies promising to help with that debt. Some of the companies that promise help are outright scams. Here are some tips to avoid a student loan debt relief scam:
- Never pay an up-front fee. It’s illegal for companies to charge you in advance before helping you. If you pay upfront to reduce or get rid of your student loan debt, you might not get any help — or your money back.
- Only scammers promise fast loan forgiveness. Before they know your situation, scammers might say they can quickly get rid of your loans through a loan forgiveness program. But they can’t.
- A Department of Education seal doesn’t mean it’s legit. Scammers use official-looking names and logos, and say they have special access to certain federal programs. They don’t.
- Don’t share your FSA ID with anyone. Scammers could use it to get into your account and take control of your personal information.
If you think you’ve responded to a scam, tell the FTC and your State Attorney General.
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