Tennessee Department of Commerce & Insurance warns of student loans/forgiveness scams
NASHVILLE, Tenn.--The Tennessee Department of Commerce & Insurance (TDCI) is warning residents with student loans and those being offered loans/grants to be cautious of scams.
TDCI Commissioner julie Mix McPeak says “Unsolicited offers, upfront fees, and no-strings-attached debt forgiveness can all be red flags of scholarship and student loan scams. We urge Tennessee students to take the time to thoroughly investigate their student loan and/or scholarship options. When it comes to scams, a few minutes of research could help you avoid years of regret.”
TDCI says when it comes to scholarship and student load scams, residents should look for red flags such as loans offered with an upfront fee and loans you never applied for.
You should also take time to investigate the offers and check your options. Scammers will often try to pressure you into making quick decisions.
On loan forgiveness and payment reduction scams, TDCI says look for red flags like someone offering to negotiate student loans for a fee. Residents should always read the fine print of emails and letters sent to your home and offering loan consolidation or lower payments. There could be fees attached to these services that are actually free through the government.
If anyone gives you advice to stop making payments on loans you already have out, TDCI says it's likely a scam.
For more information on student loan scams, see the TDCI tips HERE.