In one of our previous posts, the Typical Student team already told you how to figure out that your scholarship is actually a scam. Unfortunately, there are more and more cases appearing. Seeing that, today, we’ll show you 3 most popular student loan scams in 2019.
#1 IRS Student Tax Scam
How it looks: A student receives a phone call from a person who says they are IRS agent and claims that the student owes a "federal student tax."
There is no federal student loan tax. What’s more, the IRS will:
- always contact you first by mail before calling you.
- never demand immediate payment.
- never request a specific form of payment such as a wire transfer.
- not threaten you with arrest or deportation for not paying your taxes.
- not request personal or financial information by email.
#2 Student Loan Consolidation Scam
How it looks: A student loan company promises to consolidate your student loans and lower your monthly payments. And they say they’d do it for a fee.
- The only official form of student loan consolidation is with the federal government. Check out Studentloans.gov or call 1-800-557-7394.
- There is no fee for student loan consolidation.
- If the company claims to have a relationship with the U.S. Department of Education, it's a scam.
- Importantly, student loan consolidation does not lower your interest or monthly payment. Rather, your monthly payment is equal to a weighted average of the interest rates on your current federal student loans.
#3 Student Loan Forgiveness Scam
How it looks: Another student loan debt company that usually contact you via an online ad or email) promises to forgive your student loans for a fee.
- No student loan debt company will "forgive" your student loans - no matter how much you pay them.
- This is a scam that sounds like Public Service Loan Forgiveness, which is a legitimate, federal government program for public servants with federal student loans.
- If the company claims to have a relationship with the U.S. Department of Education, it's a scam. When it comes to student loans, only student loan servicers and debt collectors have a relationship with the U.S. Department of Education.
- Don't pay an upfront fee for student loan debt relief.
- For your federal student loans, you can enroll for free in a student loan repayment plan with the federal government, which may offer student loan forgiveness after 20-25 years. You can also consolidate your federal loans (not private student loans) into a Direct Consolidation Loan with the federal government.