By BRENT MARTIN
St. Joseph Post
Repayment of federal college student loans begins this month.
Con artists are hoping to prey on those worried about repaying their student loan debt.
The federal government suspended repayment of federal student loans during the coronavirus pandemic. Interest on those loans began accumulating last month with the first payments after forbearance coming due this month.
Missouri Western State University Interim Financial Aid Director, Jessica Hills, cautions that the con artists are working full-time right now, playing off fear and confusion.
“So just know that you don’t have to pay for help in applying for an income-based repayment plan or consolidation,” Hills advises in an interview with KFEQ/St. Joseph Post. “So if a company is reaching out to you and saying, ‘If you pay us a fee, we’ll fill out all this paperwork for you,’ you don’t want to do that. You always want to work specifically with your loan servicer and they can help you with all of those.”
Hills says her office has heard from students who have reported suspicious letters and offers.
“We have had students reach out to us that maybe got a letter in the mail and thought, this doesn’t seem right,” Hills says. “And so, they’ve brought it in to our office and said, ‘Can you look at this?’ And we’ve said that’s definitely a scam. You don’t want to call them. You don’t want to reach out to them.”
Hills says that often scams pressure students, graduates, and their parents to give sensitive financial information or else.
“And a lot of times they try to make it sound like you’re running out of time: you have to apply by next Thursday or your time’s going to run out,” according to Hills. “But those income-based repayment plans are always out there for you. So, students can apply at any point in time for those.”
Hills reminds federal student loan borrowers that they never have to pay for advice. She suggests speaking with the company that holds your loan to work out a consolidation or an income-based repayment plan.