The reinstatement of federal student loan payments may lead to confusion and susceptibility to fraudulent schemes.
As federal student loan payments resume after a three-and-a-half-year hiatus, the New York Department of State’s Division of Consumer Protection is arming borrowers with essential advice to safeguard against scams
The Department urges borrowers to stay updated about federal student loan payments by following them on social media for weekly tips aimed at educating and empowering New York consumers. They also encourage signing up for consumer alerts via email or phone. Secretary of State Robert J. Rodriguez emphasizes the need for vigilance, cautioning against false promises of special access or guaranteed eligibility. He warns borrowers about potential scammers who may claim to assist in canceling or reducing loans for a fee. Rodriguez reassures that obtaining advice or help with federal student loan payments, deferment, or income-based plans is entirely cost-free and can be directly accessed through the U.S. Department of Education at StudentAid.gov.
He further advises caution when faced with scammers making unfounded claims or asserting incomplete applications. Borrowers are directed to verify their application status directly through the U.S. Government federal student loan payments portal at StudentAid.gov. The Department of Education‘s webpage is recommended for the most accurate and up-to-date program information.
Protecting personal information, including Federal Student Aid ID and social security numbers, is paramount to avoid phishing scams
The U.S. Department of Education is emphasized as the sole legitimate point of contact and will never make calls or send texts requesting confidential information. Genuine emails will only originate from specific addresses.
In cases of encountering scams, borrowers are urged to promptly report them through official channels such as the Federal Student Aid website or the Federal Trade Commission. Additional resources and tips are available from the Department of Education and the Federal Student Aid Information Center.
Monitoring credit reports and scores is stressed as a proactive measure during the repayment process. Borrowers are encouraged to regularly check their reports for any irregularities, with free reports accessible through annualreport.com or by calling 1-877-322-8228.
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