Scam Alert: Scammers offer student debt forgiveness for a fee

The scammers ask for personal information and a payment to “transfer” debt.
Published: Nov. 23, 2020 at 7:49 PM CST
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MADISON, Wis. (WMTV) - A new scam targets people with student loan debt—offering debt forgiveness for a fee.

Scammers call people, claiming to represent the student loan service company Navient, according to the Better Business Bureau (BBB) of Wisconsin. They then explain that as a part of a lawsuit settlement, your student debt is partially or completely forgiven.

Next, the scammers ask for personal information and a payment to “transfer” debt from Navient to “the Department of Education” or another organization. The scammers then request debit or credit card information for regular fees, and withdrawal funds according to the agreed “payment plan.”

BBB of Wisconsin says Navient customers do not receive phone calls offering to transfer loans. Instead, BBB of Wisconsin says to look into other options such as the Public Service Loan Forgiveness and Department of Education for information regarding your type of loan.

Additionally, people are told to be skeptical of unsolicited callers and hang up when in doubt. To avoid these scams, it is best to contact your servicer for information regarding potential student loan forgiveness programs.

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