Experts are warning of a fresh uptick in student loan scams right now, as fraudsters seek to prey on borrowers' fears of skyrocketing payments.
While student loan fraud isn't new, scam attempts have climbed this year, said Jason Williams, assistant inspector general for investigations at the Education Department's Office of Inspector General. Complaints to the OIG's hotline, where people can report fraud, among other legal violations relating to the department's funds or programs have spiked this year, he said.
"Fraud is fraud. We always have fraud," Williams said.
But student loan scams, which run the gamut from identity theft to fraudulent debt relief, tend to increase during times of confusion and uncertainty. As student loan repayment rules shifted during the pandemic and forgiveness appeared to move in and out of reach to millions of borrowers, scam attempts soared, Williams said.
And now, experts say we're in another ripe moment for scammers as the Trump administration rolls out a series of new student loan rules.
