According to Student Debt Relief, more than 45 million Americans are dealing with student loan debt. The average amount owed is $37,172. With that much money involved, student loans have become a prime target for scam artists. Farmers Bank wants our consumers to be aware of suspicious offers of loan forgiveness assistance.
Anyone with student loan debt should beware of loan rescue scams. Even reputable companies can’t offer anything to borrowers that can’t be obtained – for free – from federal student loan servicing companies.
Iowa College Aid recently released three warning signs that should raise suspicions about loan rescue offers. They include:
- Direct solicitations: It’s best to ignore offers received – out of the blue – through email, snail mail, by text message or by phone.
- Advance payment: Any company that requires an advance payment for loan forgiveness services is one you shouldn’t trust.
- Guarantees: If an offer includes a guarantee that your loan will be forgiven, especially if it offers immediate forgiveness, it is likely a scam.
Iowa College Aid advises that the best practice for repayment of your student loan is to do so through a federal student loan servicer. They also advise that borrowers should never give out their Federal Student Aid ID or allow a company to create one on their behalf.