Beware: Student Loan Scam Targets Borrowers in Illinois, Wisconsin

The Illinois Department of Financial and Professional Regulation (IDFPR) and Attorney General Kwame Raoul have issued a critical warning about a scam that is exploiting student loan borrowers in our area.

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According to a press release from the Illinois Attorney General's Office, scammers are preying on individuals seeking financial relief, promising lower payments or outright loan forgiveness in exchange for hefty upfront fees after recent changes surrounding student loan repayment options.

Scammers Use Deceptive Tactics

These fraudsters often reach out through phone calls, text messages, emails, and even traditional mail, falsely claiming to be affiliated with government agencies, including the Department of Education.

Borrowers should get their information from the Department of Education or their student loan servicer to avoid potential scams. I will continue to advocate for students and hold defrauding institutions accountable. -Attorney General Raoul

To help borrowers identify scams, experts recommend being vigilant for certain red flags.

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Red Flags to Watch For

These include promises of immediate loan forgiveness, requests to sign power of attorney forms, and high-pressure sales tactics that create urgency.

Legitimate companies will never ask for personal login information or falsely claim government affiliations, according to the press release.

If you suspect a scam or need assistance, contact the Illinois Attorney General’s Student Loan Helpline at 1-800-455-2456, or CLICK HERE to connect to the AG's complaint website.