Given the whole student loan debt issue and controversy, there have been plenty of solutions offered by various different companies and businesses. These solutions included refinancing, consolidation, some income-driven repayment plans, and even loan forgiveness. The associated companies and entities happened to be legitimatized businesses as well as the federal government.
These solutions really do help people who sign up for them, but for all of the legitimate and helpful offers out there, there are a couple of scams to avoid. Long story short, there are plenty of illegitimate “solutions” offered to vulnerable and desperate student loan borrowers that simply aim to scam someone out of their money.
These scams take advantage of the uncertainty and inexperience of student loan debtors who happen to be mostly Millennials. There have been several scams that target college students, but a new scam has just been discovered recently by Snopes, a fact checking website.
The name of the scam? Here is the keyword to look out for: EDU Loan Servicing. This “company” was listed on a consumer watchdog” web page and advertised student loan forgiveness. On top of this, the website was listed on I Support Forgiveness, a review site for certain products.
EDU Loan Servicing provides a convenient phone number on the notice for loan cancellation services. This sounds like it’ll help you out, but there is one catch to it all. The main purpose of the number is to scrape personal information. Snopes called this number multiple times to confirm this intent.
This is just one scam that is part of an enormous trend targeting the college-age demographic. Since college students have the least experience, they make for ideal targets given their student loan debt burden.
At the very least, heightened awareness can go a long way towards limiting the conversion rate of these scams. Even just a 1% success rate can make a decent bit of cash in multiple different ways. A good rule of thumb is to do research on whatever “company” is offering a service, but another good tactic is to rely on the government (aka .gov URLs) since they offer plenty of free services related to student loans.
At any rate, a scam here or there is nothing new. There is always some entity or “entrepreneur” who concocts a way to scrape information. Given that a controversial issue is coupled with a highly-targetable demographic, it makes perfect sense that student loan scams would make their debut.