Wisconsin DFI warns borrowers of student debt relief scam

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MADISON, Wis. – The Wisconsin Department of Financial Institutions is warning borrowers of student loan debt relief scammers.

The department said people should be cautious with phone calls, emails, and texts that claim to provide relief from federal student loans.

The messages are used to scam borrowers into sharing personal and financial information.

The DFI has a list of warning signs to look for when trying to avoid fraud.

  • Up-front fees
  • Promises of immediate total loan forgiveness
  • Requests for an FSA ID username and password
  • High-pressure sales phrases
  • Requests for a third-party authorization or power of attorney
  • Spelling or grammatical errors

Officials say the best thing to do is to create a payment plan before student loan payments are due.