The Better Business Bureau (BBB) of Georgia is issuing a warning to students regarding a surge in loan forgiveness scams targeting borrowers as federal student loan repayment is set to resume on May 5th. This comes after the Department of Education announced that debt collection would recommence and clarified that there would be no mass loan forgiveness program.

The resumption of loan repayment will impact approximately five million student borrowers, who are expected to receive email notifications outlining their repayment options. The BBB cautions students to be wary of companies promising to reduce their debt through purported student loan forgiveness programs in exchange for an upfront fee. According to the BBB, these scams often involve dishonest collectors claiming they can save borrowers money by consolidating their loans and requiring a minimal initial payment. “Just make sure you are using a secure website and create an FSA student ID and can pay it directly to that company and don’t use a random website and if someone calls, verify that caller to make sure,” advised Taelore Hicks, BBB Atlanta spokesperson.

The Department of Education urges borrowers to create a Federal Student Aid (FSA) ID online at Studentaid.gov to access and check their loan balance securely. This allows them to manage their loan information and make payments directly through authorized channels, minimizing the risk of falling victim to fraudulent schemes.

The BBB advises students to exercise caution and verify any offers or claims regarding student loan forgiveness or consolidation before providing personal information or making any payments. If you suspect you have been targeted by a scam, report it to the BBB and the Federal Trade Commission.