MADISON, Wis. (WMTV) – Student loan borrowers should be wary of a number of scams that could arise as the federal student loan payment hiatus ends, the Department of Agriculture, Commerce and the Department of Agriculture, Commerce and Industry warns. of Consumer Protection.
The DATCP noted Monday that the final extension of the federal student loan payment hiatus runs until Jan. 31, 2022. DATCP Secretary Randy Romanski said fraudulent loan companies could take advantage of it.
âStudent loan debt relief scammers target borrowers with bogus offers of loan cancellation or consolidation savings,â Romanski said. âThere are many resources that consumers can access without paying a fee. I encourage borrowers to use DFI’s resources for information on repayment services and to report any fraud to our DATCP team.
The DATCP encouraged borrowers to create a repayment plan now, before their payments become due. Wisconsin Department of Financial Institutions Secretary Kathy Blumenfeld suggested people look at different types of repayment plans, as well as canceling the loan.
âNot waiting until the last minute to develop a plan is important and will help ensure a smooth return to reimbursement,â said Blumenfield.
Both agencies provided these telltale signs to recognize a fraudulent student loan company:
- Initial charge requests
- Promises of immediate total loan forgiveness
- FSA ID username and password requests from a borrower
- High-pressure sales phrases to get people to call back immediately, such as “new laws” or “program shutdown”
- Third Party Authorization Form or Power of Attorney Requests
- Use of spelling or grammar mistakes
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