On Saturday, Trump said he would impose additional sanctions against Iran in a bid to prevent the country obtaining nuclear weapons.World Politicsread more
The major indexes have stretched to all-time highs and are riding one of their best first halves in decades.Trading Nationread more
Tensions between the U.S. and Iran will likely escalate in the near future, a former adviser to the Iranian government said on Monday.Energyread more
Millennial stocks are looking fly this month, and one name could be on the verge of exploding in the next year.Trading Nationread more
Chinese vice commerce minister said Monday that Beijing would like the U.S. to cancel "inappropriate" actions against Chinese companies.China Economyread more
Eldorado Resorts has agreed to merge with Caesars Entertainment in a cash and stock deal that values its peer at about $17.3 billion including debt.Casinos and Gamingread more
A decisive win for Turkey's main opposition party in a re-run of a mayoral election in Istanbul this weekend has prompted hopes for economic and political change.Europe Politicsread more
Sixteen Asia Pacific countries have been negotiating the Regional Comprehensive Economic Partnership since 2013, with India's reluctance to open up its markets a major...Asia Economyread more
The secretary of State said he was traveling to Saudi Arabia and the United Arab Emirates to make sure that the U.S. is "strategically aligned" with its allies.Politicsread more
FedEx heads into earnings this week well off its highs, but one technical analyst says the worst could be over for the delivery company.Trading Nationread more
Experts say Facebook's cryptocurrency project Libra has been a catalyst for the price of bitcoin going higher.Technologyread more
First, you receive a call about your student loans.
The person on the other end offers to lower your monthly payments or make your debt disappear all together, potentially for a fee. Sounds great, right?
You go through the steps, sharing your federal student loan ID and other sensitive information along the way.
No worrisome notices arrive at your door because the person, using your ID, changed your billing address. Months pass until you learn that your loans have gone unpaid and slipped into default, and that you've fallen prey to one of the growing number of student loan scams.
Seven in 10 college graduates are in debt from their education. The average person leaves school $30,000 in arrears, while nearly 20 percent owe more than $100,000. Americans are now more burdened by education loans than they are by credit card or auto debt.
For scammers, this is an opportunity.
These fraudsters commonly promise student debt forgiveness and lower payments. They often demand upfront fees up to thousands of dollars for this "service," which is illegal. So far, these charges have cost student loan borrowers more than $95 million, according to the Federal Trade Commission. The FTC recently launched "Operation Game of Loans," an effort to crackdown on these companies around the country.
“When there’s a lot of debt, there will be people who try to take advantage of people who have that debt and are overwhelmed by it,” said Brianna McGurran, a student loan expert for personal finance website NerdWallet.
McGurran said she receives frequent texts and phone calls from companies making wild claims about student loans.
Never respond to requests to share your federal student ID, except from your servicer or the government, said Mark Kantrowitz, the publisher of SavingforCollege.com. Also, he said, be wary of any promises of "immediate" cancellation of your student debt.
"As we all know, loan forgiveness is not that quick of a process," Kantrowitz said, invoking one of the most popular — and real — programs. "Public service loan forgiveness takes 10 years. "
These scammers will often offer services that you could do yourself, online, in less than half an hour.
For example, if you're struggling to meet your student loan payments, you might be able to switch into an income-driven repayment plan with your servicer. Under the program, your monthly bills will be capped at a portion of your earnings.
And loan forgiveness might truly be available to you, if, say, you work in public service or are permanently disabled, but that program also requires paperwork not payments.
If you suspect you've been tricked by one of these companies, you should contact your lender or servicer and let them know what happened. You'll want to change your username and password immediately. "You should be able to stop making payments," McGurran said.
NerdWallet also has built a database of companies promising student loan services and relief that you should be wary of. Very wary.
More from Personal Finance
These are the ways student loans stop people from buying a house
Student loan nightmare: Some borrowers have to start over
People with massive student debt hope Trump will let them declare bankruptcy