Taking out student loans marks a significant step for millions of people pursuing higher education. It doesn’t matter if you’re a first-time borrower or someone adding to existing federal student loans. The process becomes stressful, and you trust the guidance of loan servicers and financial institutions to help you make informed decisions about your educational future. Unfortunately, some individuals and companies exploit this trust through deceptive practices and outright fraud. Student loan scammers target vulnerable borrowers, promising unrealistic solutions like complete loan forgiveness or dramatically reduced payments through federal government programs that don’t actually exist. And if you fall victim to one of these scams, you need to know what to do and, more importantly, how to find a way out. Common Types of Student Loan Fraud Student loan scams come in many forms, but they typically involve companies making false promises about federal student aid or debt relief services. These scammers often claim special relationships with the federal government or loan servicers to gain your trust. They might guarantee immediate student loan forgiveness or claim they can eliminate your federal loans through secret programs. Some fraudulent companies charge upfront fees for services you could get for free through your […]
