For a growing number of students taking on a loan is the inevitable solution to pay for education costs. According to the U.S. Department of Education, there are 41.8 million Americans with outstanding federal loans – that’s one out of eight Americans. With student debt now at 1.2 trillion dollars and many borrowers struggling to pay off their loans comes an opportunity for debt relief scams to flourish.
While student loan scams have been around for several years, our data shows that they have become significantly more prevalent in recent months. In fact, our users reported ten times more scam calls and text messages in the first quarter of 2016 than in the previous quarter. Student loan phone scams are on the rise – so let’s find out where these fraudulent calls come from and how you can identify them:
Top Ten Area Codes Associated with Student Loan Scams: Five Signs of a Student Loan Scam:
Top Ten Area Codes Associated with Student Loan Scams:
Five Signs of a Student Loan Scam:
The agencies behind these calls are known to deceive customers about the benefits of their services and charge hefty fees. The U.S. Department of Education affirms that you never have to pay to get help managing your student debt and offers free assistance on their website.
How You Can Protect Yourself from Scammers
An effective way to protect yourself from student loan scams and other fraudulent calls is Whitepages ID. The app identifies incoming calls and marks suspected scam and spam so you know when not to pick up the phone. If a scammer does get through to you, hang up immediately. Never give out any personal information. You can also help others in our community by reporting that number through the app.
Education loans are a pain in itself. Nobody needs the added burden of paying a scammer. Help us spread the word and protect those who are vulnerable to debt relief scams.