What to do if debt collectors call about student loans

With student loan collections resuming, here's how to protect yourself from scams and understand your rights when contacted by debt collectors

With student loan collections resuming, here's how to protect yourself from scams and understand your rights when contacted by debt collectors

As the government resumes collection on debt from millions of default student loans, experts warn scammers could be looking to take advantage of borrowers. So if you get *** call from *** debt collector about student loans, here's what you should know. First, ensure the person calling you is legitimate. Check the status of your loan and whether it was turned over to collection by verifying directly with your student loan servicer. Next, know that debt collectors are legally required to provide you with information in writing. Ask for *** validation notice of your debt, which must include the amount owed, the name of the creditor, and *** statement of your rights. If you fall into default, collections may include wage garnishment or tax refund seizure. Contact your loan servicer as soon as possible to explain your situation and discuss your options. And finally, the Department of Education says you should never have to pay for help on your federal student aid. So if you're contacted by *** company asking you to pay for an enrollment, maintenance or subscription fee to help manage your loans, you should walk away. Reporting in Washington, I'm Amy Lowe.

What to do if debt collectors call about student loans

With student loan collections resuming, here's how to protect yourself from scams and understand your rights when contacted by debt collectors

The Department of Education has resumed collection on debt from millions of defaulted student loans for the first time in five years. You may be wondering: what are your rights if a debt collector contacts you? And how can you be sure the call is legitimate, with scammers looking to prey on vulnerable borrowers? If a debt collector contacts you, verify their legitimacy by checking directly with your student loan servicer to confirm the status of your loan and whether it has been turned over to collections. Debt collectors must legally provide a written validation notice detailing the amount owed, the creditor's name, and your rights. The FTC advises against sharing personal or financial information with a debt collector until you've gotten validation information or are already familiar with the collector. The law also limits how and when a debt collector can contact you about your debt. For example: Debt collectors can’t contact you before 8 a.m. or after 9 p.m., unless you agree to it.Debt collectors can’t call you more than seven times within a seven-day period, or within seven days after talking with you by phone about a particular debt.Debt collectors can’t contact you at work if you tell them you’re not allowed to get calls there.Debt collectors can’t contact you by email or text message if you ask them to stop. Debt collectors can’t privately message you on social media if you ask them to stop.Borrowers in default on their student loans may face wage garnishment or tax refund seizure. Contact your loan servicer promptly to discuss repayment options and explain your financial situation.The Department of Education advises borrowers to avoid paying for services related to federal student aid. If a company asks for fees to manage your loans, it’s likely a scam.

The Department of Education has resumed collection on debt from millions of defaulted student loans for the first time in five years.

You may be wondering: what are your rights if a debt collector contacts you? And how can you be sure the call is legitimate, with scammers looking to prey on vulnerable borrowers?

If a debt collector contacts you, verify their legitimacy by checking directly with your student loan servicer to confirm the status of your loan and whether it has been turned over to collections.

Debt collectors must legally provide a written validation notice detailing the amount owed, the creditor's name, and your rights. The advises against sharing personal or financial information with a debt collector until you've gotten validation information or are already familiar with the collector.

The law also limits how and when a debt collector can contact you about your debt. For example:

Debt collectors can’t contact you before 8 a.m. or after 9 p.m., unless you agree to it.
Debt collectors can’t call you more than seven times within a seven-day period, or within seven days after talking with you by phone about a particular debt.
Debt collectors can’t contact you at work if you tell them you’re not allowed to get calls there.
Debt collectors can’t contact you by email or text message if you ask them to stop.
Debt collectors can’t privately message you on social media if you ask them to stop.

Borrowers in default on their student loans may face wage garnishment or tax refund seizure. Contact your loan servicer promptly to discuss repayment options and explain your financial situation.

The Department of Education advises borrowers to avoid paying for services related to federal student aid. If a company asks for fees to manage your loans, it’s likely a scam.

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