Financial Regulation Division warns student borrowers against scams


September 29, 2022

SALEM – Oregon’s Division of Financial Regulation (DFR) is warning people about the rise in student loan scams. With recent changes to federal student loan programs, scammers are bombarding borrowers with fraudulent loan forgiveness and refinance offers.

The division reminds people to ignore phone calls, emails, social media posts and other unsolicited messages from people claiming they can help you get your student loans forgiven faster or you saying you should refinance your loan. Do not accept these unexpected offers without first checking whether the offer is legitimate. Chances are it’s a scam. Scammers may use phrases such as “pre-register for any loan forgiveness” or “you need to apply within the next 24 hours”.

“There are no fees associated with registering for student loan forgiveness, so don’t fall for these scams,” said DFR Administrator TK Keen. “Everyone will have the same opportunities and there is no way to queue up and get the loans canceled any faster.”

There are recent and upcoming changes federal student loans and
forgiveness of loans, as well as the Biden administration
single cancellation. With these changes, unfortunately, there are people who prey on those who ask for help.

“There is no application available yet for President Biden’s relief package,” said Lane Thompson, Oregon’s student loans ombudsman. “People can be alerted once the program is live by visiting the
US Department of Education website and check the box title “NEW!” » Updates from federal student loan borrowers. ‘”

A helpful reminder is that while this is not a .gov website, it is not an official federal government site. The main signs to look out for are if they tell you there is an emergency, a warranty, and any kind of secrecy.

“Every time the Department of Education announces changes to the student loan program, the scammers come out of the woodwork,” Thompson said. “The advice remains the same: if it sounds too good to be true, it probably is.”

If you have any questions regarding your student loan eligibility, it is best to go to
studentaid.gov. If you believe you have received incorrect information from your service agent, please email
[email protected] or call our helpline at 888-877-4894 (toll-free).

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About the Oregon DFR: The Financial Regulation Division is part of the Department of Consumer and Business Services, Oregon’s largest business regulatory and consumer protection agency. Visit www.dcbs.oregon.gov and dfr.oregon.gov.

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