Biden's Student Debt Relief Plan Leads to Increase in Scam Texts
According to RoboKiller, a call and text blocking app, the number of scam texts increased in August after the Biden administration announced its student debt relief plan.
Americans have been hit hard by student loan scammers this year, as the Biden administration works to provide student debt forgiveness to tens of millions of borrowers. These scammers have capitalized on the buzz and confusion around loan forgiveness this fall, convincing many people to part with their money and personal information. This is a serious problem that has caused billions of dollars in losses for American consumers. The government needs to do more to protect people from these scammers and to help those who have been victimized by them.
Giulia Porter, vice president at the call and text blocking app RoboKiller, warns that scammers are increasingly using current events and trends to make their schemes more believable. She advises people to be vigilant and to use a trusted call and text blocker to protect themselves.
Robocallers are getting more and more creative in their scam attempts, and student loan scams are becoming a more popular target. According to RoboKiller's data, student loan scams make up about 10% of all robocalls. This is a top-five topic for scammers, just behind the infamous extended car warranty scams that make up about 15% to 20% of all robocalls.
The too-good-to-be-true offer is a scam that often encourages potential victims to act fast and pay a fee to claim a stellar refinancing rate or complete loan forgiveness. These offers come from legitimate companies that are pushing the boundaries of the Consumer Protection Act and sending robocalls and texts.
There are levels of shadiness to what student loan refinancing companies are offering. When you're robocalling people and offering them a great rate, there's no fine print that you can send people over the phone. There's certainly a gray area there. It might be a legitimate company, but the offer itself might not be as good as it sounds.
As the Biden administration continues its push for more federal student loan forgiveness, scammers are stepping up their efforts to impersonate Department of Education officials and trick borrowers into handing over personal information or paying bogus fees. Borrowers should be vigilant and only work with trusted sources when applying for student loan forgiveness. For more information and advice, borrowers can check out our guide to student loan forgiveness.
RoboKiller is doing its best to track down scammers, but it's difficult because most scammers use caller ID spoofing to mask their true phone number. The best way to protect yourself from scam phone calls is to be aware of the signs of a scam call and to never give out personal information to someone you don't know.
The rising cost of college tuition is a burden for many Americans, and the possibility that data about student loans could be falling into the wrong hands is a serious concern. Student loan debt is a major financial issue for many people, and it is important that the companies handling this sensitive information protect it properly. If scammers are able to access this data, it could have a devastating impact on the lives of those who are already struggling to pay off their loans.
The Department of Education has warned borrowers about scammers in official messaging about student debt forgiveness. In the automated debt relief application confirmation emails, the department tells borrowers to beware of scams and lists three official email addresses that borrowers may receive legitimate emails from. The same message is posted on the studentaid.gov website. Borrowers should be aware of scammers when applying for debt relief, and only use official channels to communicate with the Department of Education. By being vigilant, borrowers can protect themselves from scams and ensure that they are getting the best possible information about their student debt relief options.
The Department of Education has warned students about companies that charge for help with loan discharge, forgiveness, cancellation, or debt relief. These services are available for free from the Department of Education and loan servicers. Students should never reveal their personal information or account password to anyone.
It's truly alarming how easy it is for scammers to target people who are struggling to pay off their loans. In both of the cases mentioned above, the victims were taken in by offers that seemed too good to be true. Unfortunately, by the time they realized they had been scammed, it was too late. It's important to be vigilant when it comes to offers related to your loans, and to never give out personal information unless you are absolutely sure you are dealing with a legitimate company or individual. If something sounds too good to be true, it probably is. Don't let yourself become a victim of a loan scam.
I'm embarrassed that I didn't trust my gut feeling that this sounded too good to be true.
Technology has made it easier for scammers to target people, but there are still ways to protect yourself. Be aware of the signs of a scam, such as unexpected calls or texts, and never give out personal information or money to someone you don't know. If you do become a victim of a scam, report it to the FTC and work with your bank to recover any losses.
Porter's comments highlight the dangers that many people face when trying to navigate the student loan system. While many people think they can avoid scams, the reality is that anyone can fall victim to one. This can be especially devastating for those who are already struggling with debt.