Watch Out for Student Loan Forgiveness Scams

Managing student loan debt is challenging enough without the added risk of scams. As awareness of legitimate student loan forgiveness programs grows, cybercriminals are increasingly targeting current and former students with misleading offers designed to steal personal information or money.

How Does the Scam Work?

Like many other online scams, cybercriminals contact current and former students through various channels, including social media, text messages, phone calls, and emails, claiming to offer student loan relief. If you fall victim to these scams, sensitive information such as your name, date of birth, Social Security number, and home address may be compromised.

How to Identify Student Loan Scams

Cybercriminals often create fake websites to deceive consumers, a tactic known as website spoofing. Website spoofing involves replicating legitimate websites to make them appear authentic.

Before you click or provide any account information, always double-check that you are on the correct website. Taking a few extra seconds to look for red flags can help protect your personal information. Watch for the following:

• Does the domain name appear altered?

  • Example: studentaid.gov (correct) vs. studenta1d.g0v (fraudulent)

• Are there consistent spelling or grammar errors on the webpage?

Think Before You Click

Avoid opening file attachments from unknown or unverified senders via text, email, or social media. These files may contain malware or ransomware that can compromise your personal information.

If you believe you have fallen victim to a student loan scam, contact your local Frandsen banker to confirm whether your personal information is secure. You may also submit a report to the Federal Student Aid website to help track active scams and raise awareness for others.