Urgent Warning for New Yorkers With Student Loans

If you have student loans, be careful before clicking on an offer promising to lower your payments or wipe away your debt. New York officials say scammers are using recent changes to federal repayment programs to target confused borrowers.

New York Attorney General Letitia James issued the warning this month. Her office says changes made by the Trump administration, including the elimination of the Saving on a Valuable Education plan, known as SAVE, and the phaseout of existing income-based repayment plans, have left many borrowers unsure about what happens next.

Scammers Are Taking Advantage

That confusion is giving scammers an opportunity. James says borrowers are dealing with the stress of student loan debt, and criminals are trying to capitalize on their uncertainty by offering relief that is not real.

Be suspicious of unexpected calls, emails, texts, or online ads claiming your student loans can be forgiven or eliminated quickly. No private company or individual can guarantee that your balance will disappear.

What You Should Know

According to New York State officials, you should never have to pay to enroll in a federal student loan program. Watch for anyone demanding an upfront fee, pressuring you to act immediately, claiming to represent the federal government, or asking you to sign over power of attorney. Charging upfront fees for student loan services is illegal in New York.

Never share your Federal Student Aid identification or login. A scammer could use it to enter your account, change your information, or take control of your loan settings. When in doubt, contact your loan servicer through its website.