Student debt is a hot topic right now.
Political candidates have jumped into the fray, offering plenty of consternation and even a few possible solutions.
Unfortunately, so have scammers.
They're taking advantage of cash-strapped college graduates who are looking for some type of lifeline while they're swimming in an ocean of debt.
According to the Wall Street Journal, the class of 2015, on average, graduated from college owing slightly more than $35,000 in student loans.
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Scammers are promising quick and easy relief but the promises are hollow and too many hopeful borrowers don't discover that until after they've paid still more money out of pocket, according to the Better Business Bureau of Minnesota and North Dakota.
The BBB recently received two reports that involved Minnesota residents with student loan debt who signed up with a California firm that promised to help them qualify for a student loan forgiveness program. After both individuals paid the company nearly $600 up-front for the service, the company failed to deliver.
Here, according to the BBB, is how these scams work: You get a phone call, email or spot a post on social media that claims a company can erase your student loan debt. Many claim that their service is made possible by a new government program or policy. The company then asks for an up-front fee to supposedly negotiate with your lender or student loan servicing company on your behalf.
They'll claim they've helped numerous other clients, but the BBB advice is this: Don't believe them. Student loans can only be forgiven under specific circumstances that aren't fast or easy, the BBB noted. Once the money has been paid, the scammers take your fee and disappear.
In another version of the student loan scam, con artists claim that they can save you money by consolidating your loans, the BBB said. Some charge a fee for using a free government service. Others may actually move your loans to a private lender with a higher interest rate.
The bottom line, according to the BBB: Be on guard, know your options and stay in contact with your lender or loan servicing company. Contact BBB or your school's financial aid office if you receive questionable offers.
Research loan forgiveness programs at https://studentaid.ed.gov/sa/repay-loans .
