Prairie State Wire

The Illinois Department of Financial and Professional Regulation (IDFPR) Division of Banking, alongside Illinois Attorney General Kwame Raoul, has issued a warning about a new scam targeting student loan borrowers. This scam exploits the current uncertainty surrounding student loans by promising lower monthly payments or loan forgiveness in exchange for upfront fees.

Scammers are reportedly contacting individuals through various means, including phone calls, texts, emails, and regular mail. They often falsely claim to be affiliated with government agencies such as the Department of Education. While some companies may offer legitimate services related to student debt relief, many do not fulfill their promises after being paid.

Illinois Attorney General Kwame Raoul highlighted the confusion stemming from legal challenges to federal relief programs: “The current landscape for loan repayment is especially confusing due to pending legal challenges to federal relief programs, and scammers may try to exploit that uncertainty.” He advised borrowers to seek information directly from the Department of Education or their loan servicer and encouraged those with concerns to contact his office. Raoul emphasized his commitment: “I will continue to advocate in support of students and will work to hold institutions that defraud students accountable.”

IDFPR Secretary Mario Treto Jr. expressed concern over this development but offered reassurance: “It is disheartening to learn of yet another scam targeting uncertain financial situations, but borrowers should take heart in knowing there are steps they can take to avoid falling victim.” Treto reminded borrowers that they need not pay for assistance and should reach out directly to their loan servicer or the U.S. Department of Education for help.