2025-05-01T11:00:00Z

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As concerns mount over the impending rise in student loan payments and the potential for wage garnishment, students and graduates find themselves increasingly vulnerable to opportunistic scams. Elaine Rubin, a respected expert in student loan policy, emphasizes the necessity for borrowers to remain alert against fraudulent schemes that promise to lower payments, secure debt cancellation, or prevent wage garnishment.

The atmosphere of anxiety and uncertainty surrounding student loans creates fertile ground for predatory companies, Rubin noted. These scammers are quick to exploit borrowers fears by offering what they claim is an easy way out. The recent shift in focus by the Consumer Financial Protection Bureau to deprioritize investigations into predatory practices has heightened the risks for borrowers, making it imperative that they stay informed and cautious.

Although scams related to student loans have existed for quite some time, reports have surged since the onset of the COVID-19 pandemic. The landscape of student debt has shifted dramatically, and any policy changes that introduce confusion are often met with a proliferation of bad actors looking to take advantage of consumers. "It's easy for predatory companies to capitalize on the chaos, Rubin explained. Being informed about your rights and understanding the current policies will help protect you.

Many of these fraudulent companies may charge hefty fees for services that borrowers can manage on their own, such as debt consolidation or loan forgiveness applications. Rubin warns that if you receive offers that claim they can help with any of the following, it's likely a scam:

• Consolidating your debt
• Granting you loan forgiveness
• Discharging your debt
• Lowering your balance
• Fixing your credit score
• Getting your loans out of default

You dont need to pay anyone to assist you with these matters, Rubin asserted. For borrowers feeling overwhelmed by their financial obligations, help is available through reputable organizations. Rubin specifically recommends the Institute of Student Loan Advisors, a nonprofit organization that provides free services to borrowers in need.

As for any enticing offer that suggests it can erase your debt, Rubin advises caution. If it sounds too good to be true, it probably is, she stated, reminding borrowers to exercise extreme caution and conduct thorough research before engaging with any service that claims to alleviate their student debt woes.