Why experts say this moment is ripe for student loan scams

By — Hannah Grabenstein Hannah Grabenstein Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/why-experts-say-the-moment-is-ripe-for-student-loan-scams Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Why experts say this moment is ripe for student loan scams Economy Jul 22, 2026 2:00 PM EDT 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. Watch the segment in the player above. President Donald Trump's "One Big Beautiful Bill Act," passed by Congress last summer, made several key changes to student loans, further complicating what was already a complex repayment system. Changes to taking out and repaying student loans took effect on July 1, including fewer income-driven repayment options for new borrowers and lower limits on some graduate loans. For millions of existing borrowers on the Saving on a Valuable Education (SAVE) plan, July 1 also started a 90-day clock before they will need to switch to a different plan or be automatically transitioned to the new standard plan. Many of those borrowers will likely face higher payments on a different income-driven repayment plan. READ MORE: Biden's SAVE plan for student loans is officially dead. Here's what experts suggest now But for millions of other current borrowers on other plans — income-driven, standard or graduated standard — nothing will change until 2028, unless they take out new loans or consolidate their old ones. "Any time we see a transition like this, that's when we always tell people to be on the lookout for these scams," said Anna Anderson, senior attorney at the National Consumer Law Center. During former President Joe Biden's ill-fated effort to discharge many student loans, scammers preyed upon people's optimism around loan forgiveness, said Carolina Rodriguez, director of New York's Education Debt Consumer Assistance Program. What's different now is that scammers are preying on people's fears around student loan changes, she said. "The fear is going to go furt