Why experts say this moment is ripe for student loan scams
Summary
Experts warn that student loan scams are rising as new rules take effect, causing confusion for borrowers. Scammers are taking advantage of fears about increased payments and changes to repayment plans.Key Facts
- Complaints about student loan scams have increased this year, according to the Education Department's Office of Inspector General.
- Student loan scams include identity theft and fake debt relief offers.
- The Trump administration's new student loan rules, effective July 1, changed repayment options and limits for new borrowers.
- Borrowers on the SAVE plan have 90 days to switch plans or face higher payments or automatic changes starting July 1.
- Some borrowers on other repayment plans will not see changes until 2028 unless they take out new loans or consolidate.
- Scammers often charge borrowers fees for help that the Education Department provides for free.
- Common scams involve companies collecting loan payments but not forwarding them, causing loan defaults.
- Experts advise borrowers to watch for payment requests and to get free assistance from federal loan servicers.
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