Frankfort KY — Attorney General Andy Beshear has issued a scam alert to warn former and current college students about companies offering student loan debt relief for a fee.
Beshear’s office and the Federal Trade Commission (FTC) say it is illegal for companies to charge upfront fees before providing debt relief services. Kentuckians have recently reported receiving strange calls and voicemails from a woman claiming she needs to discuss new federal student loan repayment options. Many getting the calls say they don’t even have student loans but were provided a callback phone number and reference number. The third-party companies behind the calls claim to offer document preparation services and pretend they can help you qualify for a loan forgiveness program – but they may want upfront fees and personal and financial information. According to the FTC and the Office of the Attorney General, some companies that promise debt relief are scams. To spot them follow these tips:
• Never pay up front
• Watch out for imposters
• Resist pressure
• Beware of legal tricks
• Never provide sensitive information
Never provide your FSA ID or PIN or other personal and financial information to someone who randomly calls you over the phone or contacts you via email.
Beshear’s Office of Consumer Protection urges former and current students who feel they are victims of questionable services to complete a complaint form.
Students having problems with their student loan servicer or a debt collector, should contact the Student Loan Ombudsman of the U.S. Department of Education at 877-557-2575.