Iowa (Radio Iowa)– Thousands of people around Iowa will soon be paying on federal student loans for first time since the COVID-19 pandemic and they are being warned to be on the lookout for scams.
Lisa Schiller is a spokeswoman for the Better Business Bureau. She says a situation like this has a tendency to bring around some crafty crooks.
Schiller says the confusion over what is happening with student loans gives scammers a hook to try and get money from a borrower. She adds it is important not give out any personal information over the phone and to report such attempts.
The pause in payments for federal student loans is expected to end October 1st with interest starting to accrue again in September. The change comes after last month’s ruling by the United States Supreme Court that rejected President Biden’s plan to eliminate up to 20-thousand dollars in federal student loans for eligible borrowers.