BBB issues warning about student loan scams

Freeman Staff

 April 23, 2015

MILWAUKEE — Everyone is anxious to get their student loans paid off, but if you are approached by someone that says they can eliminate your debt, be wary as it is most likely a scam, warns the Better Business Bureau.

The scam involves a phone call, email or social media post that claims a company can erase student loan debt. Many claim that their service is made possible by a new government program or policy, according to the BBB. As part of the process, the company asks for an upfront fee to negotiate with the student loan lender, but what they will do is take the fee money and disappear.

In another version of the student loan scam, con artists claim that they can save a person money by consolidating the student loans. Some charge a fee for using a free government service or others may actually move loans to a private lender with a higher interest rate, according to the BBB.

“Our office has been receiving an unusually high volume of calls from people inquiring about loan forgiveness offers,” said Ran Hoth, CEO and President, of the Wisconsin BBB. “We want to get the word out that these type of calls are making the rounds and to caution people to do some research before making a hasty decision.”

Learn more about student loans at www.Studentaid.ed.gov.