How to spot student loan scams
The mounting student loan crisis is leading to an uptick in scammers looking to take advantage of college graduates’ debt woes, according to one financial expert.
“This student loan situation is a real crisis. We have almost $1.5 trillion in student loan debt and almost 11 percent of that -- $160 billion of it -- is 90 days or more delinquent. So, people are struggling,” Ramsey Solutions financial expert and ‘Everyday Millionaires’ author Chris Hogan told the FOX Business Network’s “Mornings with Maria.”
Because of this, Hogan says people are more vulnerable to scammers.
“People are struggling so, they’re willing to look for whatever relief is out there. Unfortunately, this is a breeding ground for people to be taken advantage of.”
Hogan offered consumers three tips to spot a potential scam.
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“Number one, if you’re being charged an upfront fee or monthly fee, this is a problem.," Hogan said. "It’s illegal, they can’t do this.”
Secondly, Hogan said to watch for companies promising “immediate student loan relief.”
Finally, Hogan explained that if users are asked to share any personal information, that should raise an alarm.
“If you’re asked to provide personal information, information about your Social Security number, your federal ID -- this is also a scam.”