Two versions borrowers run into
Student loan fraud reaches borrowers in two main ways. In one, someone uses your identity to take out private or federal loans, or to enroll at a school and collect aid in your name. In the other, a debt relief company promises forgiveness or lower payments for a fee, sometimes asking for your federal account login and changing your contact information so you stop hearing from your servicer. Applying for federal repayment plans and forgiveness programs is free through the Department of Education and your servicer, so a charge for doing it is a warning sign. If your concern is instead a school or government inquiry about information you submitted, that is a separate issue and calls for a different approach.
Taking back the account
Change your federal student aid account password, review the contact information and any third parties authorized on the account, and revoke access you did not intend to give. Contact your servicer using the number on its official website, and ask about any payment plans or consolidations you did not request. Stop payments to a relief company through your bank or card issuer, and keep the contract, receipts, and messages. For loans opened through identity theft, file an identity theft report with the Federal Trade Commission, consider a police report, and ask the lender or servicer about its fraud process; federal loans have a discharge process for this situation. Check your credit reports and consider a freeze.
When legal help makes sense
Some situations can be fixed directly with the servicer and the credit bureaus. Others involve a relief company that charged substantial fees, private lenders that refuse to recognize the fraud, or collection activity and lawsuits over debt you did not incur. Federal and state laws restrict upfront fees for debt relief in many situations, and the New York Attorney General and the Federal Trade Commission have pursued companies that violate them. When we first speak, we review the account history, what was paid and to whom, and any collection or court papers. If a lawsuit has been filed against you over the debt, the deadline to answer is usually short, so that comes first.
