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Student Loans

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Student Loans

Spot It

The latest scam attempts to convince you that there are new rules and that you need to act now. This is just the latest in a bunch of scam attempts that are similar to credit card interest rate scams. 

They typically promise unrealistic amounts of loan forgiveness, fast ways to get loan forgiveness, try to get your FSA ID or other personal information and try to rush you into paying them immediately. 

Many times, they will use the U.S. Department of Education’s name and seal to give it legitimacy.


Audio Transcript:

“This is Carol Duncan; I’m calling in reference to your federal student loan. I need to discuss your repayment options with some new changes that have taken effect recently. So, if you could please be sure to give me a call back, I’m going to go ahead and give you a reference number. If you would please have this handy when you call back, it just makes this a lot easier. Thank you.”

Stop It

If you are tempted by the student loan promises, you should hang up. The companies or scammers behind the student loan pitches claim to have special abilities, but they can't do anything for you that you can't do for yourself — for free. They will likely demand an up-front fee, which is illegal in Michigan if the fee is greater than $50. Additional rules can be found in Michigan’s Debt Management Act Up-front fees for debt relief are illegal under the Federal Trade Commission’s Telemarketing Sales Rules.

Be skeptical of any unsolicited robocalls, including seemingly legitimate student loan forgiveness calls, especially if your phone number is on the Do Not Call Registry. Never give your personal, financial information or FSA ID over the phone unless you initiate the call to a trusted and verified phone number. Consider it a best practice to hang up and ignore these robocalls. Looking for help? Start with the Federal Student Aid website.

If you’ve received this kind of robocall or have fallen for a student loan scam, file a complaint with our office; the Federal Trade Commission; or call toll-free, 877-FTC-HELP (877-382-4357).

Additional tips for robocalls can be found here.

Take These Steps to Protect Yourself from Robocalls

Michigan's Robocall Crackdown Team

As the Department continues to crack down on robocalls, consumers should take these steps to protect themselves: 

  • Hang up and call the company directly using a number listed on the company's website. 
  • Never give personal information to someone you do not know. 
  • Ignore calls for immediate action; scammers try to use a sense of urgency to get you to act before you can think about what is happening.  
  • Beware of requests to pay via wire transfer, prepaid debit card, gift card, or any type of payment app.  

Report robocalls to Michigan's Robocall Crackdown Team

MI Robocall Crackdown Team