What to do if debt collectors call about student loans
With student loan collections resuming, here's how to protect yourself from scams and understand your rights when contacted by debt collectors
With student loan collections resuming, here's how to protect yourself from scams and understand your rights when contacted by debt collectors
With student loan collections resuming, here's how to protect yourself from scams and understand your rights when contacted by debt collectors
The Department of Education has resumed collection on debt from millions of defaulted student loans for the first time in five years.
You may be wondering: what are your rights if a debt collector contacts you? And how can you be sure the call is legitimate, with scammers looking to prey on vulnerable borrowers?
If a debt collector contacts you, verify their legitimacy by checking directly with your student loan servicer to confirm the status of your loan and whether it has been turned over to collections.
Debt collectors must legally provide a written validation notice detailing the amount owed, the creditor's name, and your rights. The advises against sharing personal or financial information with a debt collector until you've gotten validation information or are already familiar with the collector.
The law also limits how and when a debt collector can contact you about your debt. For example:
- Debt collectors can鈥檛 contact you before 8 a.m. or after 9 p.m., unless you agree to it.
- Debt collectors can鈥檛 call you more than seven times within a seven-day period, or within seven days after talking with you by phone about a particular debt.
- Debt collectors can鈥檛 contact you at work if you tell them you鈥檙e not allowed to get calls there.
- Debt collectors can鈥檛 contact you by email or text message if you ask them to stop.
- Debt collectors can鈥檛 privately message you on social media if you ask them to stop.
Borrowers in default on their student loans may face wage garnishment or tax refund seizure. Contact your loan servicer promptly to discuss repayment options and explain your financial situation.
The Department of Education advises borrowers to avoid paying for services related to federal student aid. If a company asks for fees to manage your loans, it鈥檚 likely a scam.