As Student Loan Payments Restart, So Will The Scammers

Statewide Iowa — A recent court ruling means thousands of people will need to restart payments on their student loans this fall after more than three years of delays, and Iowans are being warned that scammers are lurking.

Lisa Schiller, spokeswoman for the Better Business Bureau, says this is the type of situation that will bring out crafty crooks.

Schiller says the confusion over what’s happening with student loans gives scammers a hook to try and get your money. If anyone asks you for money or personal banking information over the phone, she says to hang up and report the scam. Schiller says criminals use events like this as leverage to try and get you to hand over money or personal information.

As always, no government agency or lender will ask you for information they should already have, nor will they ask for money over the phone. Last month, the U-S Supreme Court rejected President Biden’s plan to eliminate up to 20-thousand dollars in federal student loans for eligible borrowers. The pause in payments ends October 1st and student loans will start accruing interest on September 1st.