AG James offers guidance as federal student loan payments restart, warns of scams
Attorney General Letitia James has issued a consumer alert aimed at New York borrowers with federal student loans. Payments on these loans will resume this month, October 2023, and James is offering a series of tips to help borrowers navigate this transitional period. She also warns New Yorkers about scammers who may be posing as student loan servicers.
“Anxiety and confusion are widespread among borrowers as federal loan payments resume,” said James. “These tips are intended to help manage that debt and take advantage of available relief programs while staying vigilant against scammers.”
Tips for Managing Federal Loans:
- Update Contact Information: Ensure your loan servicer has your current details.
- Know Your Servicer: If your loan servicer has changed, consult the U.S. Department of Education’s Federal Student Aid website for clarification.
- Review Accounts and Estimates: Visit your servicer’s website to get an estimate of upcoming payment amounts, interest rates, and due dates.
- Explore Repayment Plans: Check your eligibility for the Biden Administration’s new SAVE Plan and Income-Driven Repayment Plans, which could significantly lower your monthly payments.
- Auto-Debit Payments: Sign up for auto-debit to avoid missed payments and potentially qualify for a 0.25% interest rate reduction.
- Be Cautious: The Department of Education and loan servicers will not call you for your social security number.
- Verify Outreach: Don’t share personal information unless you initiated contact.
- Steer Clear of Fees: Be skeptical of companies charging for services your federal loan servicer offers for free.
More information can be found on the Office of the Attorney General’s website and the Department of Education’s site. If you believe you’re a victim of a student debt relief scam, contact the Office of the Attorney General immediately at 1-800-771-7755 or file a complaint online.
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