Attorney General Phil Weiser warns student loan borrowers about scams as repayment begins
Sept. 12, 2023 (DENVER) — With student loan repayment restarting next month, and interest already accruing again as of Sept. 1, Attorney General Phil Weiser issued a warning to consumers to be vigilant against potential student loan-related scams and fraud.
“As student loan repayment starts back up in October, scammers and fraudsters will be using it as an opportunity to prey on borrowers,” Weiser said. “If you’re a Colorado student loan borrower, the best way to protect yourself—aside from exercising caution with links you click and being wary of ‘debt relief’ that sounds too good to be true—is to be prepared for repayment and make sure you are communicating only with legitimate entities.”
Weiser is encouraging borrowers to visit StudentAid.gov and update their contact information, identify their loan servicer, and contact their servicer to find out about their new monthly payment and potential alternatives to make repayment more affordable.
In addition to updating their account information and finding the correct servicer, borrowers who visit studentaid.gov may be able to take advantage of the new income-driven repayment plan that will offer the lowest possible monthly payment. Additionally, the federal government is offering the Fresh Start Initiative, a one-time temporary opportunity to help people get out of default and restore benefits they may have lost due to default.
While borrowers should know that interest is already accruing on their loans and their first payment since March 2020 will be due in October, they should also know that from Oct. 1, 2023 to Sept. 30, 2024, missed monthly payments will not be considered delinquent, be reported to consumer reporting agencies, be referred to private collection agencies, or cause loans to be placed in default status.
Borrowers who have any questions about their student loans, are having trouble getting in contact with their loan servicer, or are having any other problems with their loans, should reach out to the Colorado Attorney General’s Student Loan Ombudsperson and file a complaint.
Coloradans who want to report student loan-related scams or fraud should file a complaint at stopfraudcolorado.gov.
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