Illinois officials including the Attorney General Kwame Raoul and the IDFPR Division of Banking have issued a cautionary statement regarding a surge in scams targeting student loan borrowers. Amidst the confusion surrounding federal relief programs, scammers are promising reduced payments or loan forgiveness but often require upfront fees and fail to deliver real aid.
They might impersonate government agents or claim false affiliations with the Department of Education. Borrowers are advised to directly consult the Department of Education or their loan servicers to avoid these scams. Attorney General Raoul emphasizes the importance of using official channels for accurate information and assistance.
In recent developments, consumer protection agencies are raising alarms over student loan debt relief scams targeting individuals eager to manage or eliminate their education debt. These fraudulent schemes often lure borrowers with promises of immediate loan forgiveness and use high-pressure tactics to create a false urgency.
Key red flags include companies asking borrowers to sign power of attorney forms or guaranteeing results to secure upfront payments. To ensure safety and legitimacy, borrowers are advised to directly consult with their student loan servicers or visit the U.S. Department of Education’s official website for reliable information on repayment programs. Stay cautious and informed to avoid falling victim to these deceptive practices.
