Student Loan Scam Alert Issued for Missouri Residents

As of May 5th, the federal government has resumed the collection of defaulted federal student loans for the first time since March 2020. The Better Business Bureau is warning Missouri residents to be on the lookout for potential scams related to this change.

Student Loan Forgiveness Scams

The best day of my life (besides the birth of my children) was the day I paid off my student loans — what a relief that was.

Back in March 2020, the federal government paused federal student loan payments due to the COVID-19 outbreak. That pause officially ended last week, and now the Better Business Bureau is warning borrowers to be cautious of scams offering “easy” ways out of loan payments.

If you're considering refinancing or exploring other repayment options, be sure to do your homework before signing anything. A few tips to stay safe:

• Only sign up through official government websites
• Research any lenders you're considering
• Understand all the terms, interest rates, and protections involved before refinancing

Scammers are out there looking to take advantage of borrowers, so stay informed and protect yourself.

Read More: FBI Warns Missouri Residents to Delete Scam Texts Immediately 

Here's How You Can Avoid A Scam

The BBB suggests getting what's called an FSA ID. This allows the Federal Student Aid office to contact you directly, helping protect you from scammers who may try to reach out pretending to be loan servicers.

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Also, don't pay for debt relief, beware of big promises, and whatever you do, DO NOT give out any of your personal information.

The more you are aware of these potential scammers, the less likely you are to be scammed. And remember, if it's too good to be true, it probably is a scam.