Scammer scams are on the rise as interest rates return

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Scammer scams are on the rise as interest rates return

In addition to the pause on payments, student loan interest rates were halted during COVID, but that relief is approaching its end as interest rates kick back in this month and payments begin again on Oct. 1.

While student loan interest is decreasing, scammers are taking advantage of borrowers. As the October deadline approaches, there is a surge in robocalls, scam emails and texts.

'I will give you $5,000 for your student loan repayment, and you just have to fill out this application and all of this,' said Kelsey Leffingwell, a graduate of the University of Texas at Austin.

'It's easy to fall into these scams when you don't have money coming in and you really need help,' she said.

According to the Federal Trade Commission, people reported losing about $21 million to phone fraud in 2022, and that was before student loan interest rates were back in the picture.

We've seen that students have received nearly as many robocalls around student debt the first two weeks they've been back in school prior to the same three months before that, Tyrell said.

More than 100,000 calls have been made weekly in efforts to scam borrowers recently, Tyrell said.

SSeveral hundred thousands that are getting these types of calls every single week, he said.

Before you make payments via text, online or by phone, Tyrell said to always confirm directly with the organization you owe money to that the message did come from them.

Experts recommend careful scrutiny of bank transactions and flagging things that do not look right. If you have given out personal information in an accident, contact the FTC and local police for assistance.