As student loan payments resume, scammers look to take advantage

After a three-year hiatus, the U.S. government has resumed student loan payments, leaving millions of borrowers facing a new financial reality. The return to repayments, which commenced this month, has also led to a surge in student loan scams, with cybercriminals attempting to exploit the situation.

In North Carolina, the burden of student loan debt stands at a staggering $51 billion, affecting more than a million individuals who now find themselves burdened with additional monthly bills. To ease this financial strain, an ‘on-ramp’ repayment option has been introduced for the upcoming year. This option provides borrowers with some relief, allowing them to miss payments with reduced financial consequences.

"If you do miss a payment, you won’t be reported as delinquent immediately," explains a Betsy Mayotte, of the institute of Student Loan Advisors. "The usual 90-day delinquency mark won’t apply, and steps will be taken to prevent defaults."

However, the reactivation of more than 45 million student loan accounts has posed challenges for loan providers. Industries across the board would face difficulties if all their customers returned at the same time, as acknowledged by experts.

Amidst this restart, there has been a significant increase in student loan scams. Scammers are preying on borrowers, offering enticing yet fraudulent schemes to extract valuable information, especially financial details. Shockingly, statistics reveal that 1 in 7 Americans with student loans have fallen victim to these scams.

Zulfikar Ramzan, Chief Scientist at Aura Labs, emphasizes the importance of borrower vigilance. He points out that services such as lowering monthly payments, changing repayment plans, and loan consolidation are available for free. Scammers often charge unsuspecting borrowers for services that can be accessed without any cost.

“Most people don’t know that this is out there for free so they pay the scammers to do essentially the same work that they could’ve done an not cost whatsoever,” Ramzan said.

Ramzan adds that most of the scams are coming via texts or phone calls, not email.

While you should pay scammers no attention it is crucial to verify their payment details and due dates. If you have not received a letter from your loan provider, it is smart to log into the Department of Education's website to identify your loan holder.