SOUTH BEND, Ind. — Student borrowers have a few extra months to start repaying after the Biden administration announced another extension just weeks ago.
The extension means you won’t have to start paying until May 1, but even with this longer payment hiatus, experts say to watch out for scammers.
Text messages, emails, and phone calls — we get them every day, but at this time of year, the Better Business Bureau recommends watching out for student loan scams.
“When you get that email, phone call, or text message, don’t take what it says at face value. Do not click on any links or call any phone numbers listed,” said Katie Grevious, communications specialist for the Better Business Bureau.
Grevious says scammers are taking advantage of this to try and confuse people about refunds. If you receive notice that your interest rates during the 90-day extension have increased, she recommends that you contact your loan provider directly and research the lender – instead of just being the victim of red flags.
“You could have someone just trying to get your information, and then you could also have someone posing as a company that’s really going to try to squeeze more money out of you,” Grevious said.
According to Andrew Pentis Senior Writer at Student Loan Hero, the state of Indiana currently has nearly 900,000 student loan borrowers.
He says that while the new extension has increased scam attempts, it has helped many Hoosiers save money during the pandemic.
Despite this advantage, he warns that this will most likely be the White House’s last extension.
“They didn’t use the final word in that announcement, but I still think it’s unlikely the moratorium will be extended once again after May,” Pentis said.
If you are a victim of student loan scams, we encourage you to report them on the BBB website.