US: Debt collectors contacting you about students loans? Know your rights and how to avoid scammers

May 19, 2025 02:03 PM IST

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Scammers often try to prey on borrowers, so you need to be certain that any call you get is legitimate.What should you do if a debt collector contacts you about student loans?

Scammers often try to prey on borrowers, so you need to be certain that any call you get is legitimate.

The Department of Education in the US has resumed collecting debt from millions of defaulted student loans. This collection was resumed for the first time in five years.

Debt collectors contacting you about students loans? Know your rights and how to avoid scammers (Unsplash – representational image)

Scammers often try to prey on borrowers, so you need to be certain that any call you get is legitimate. You also need to know your rights if a debt collector contacts you.

What should you do if a debt collector contacts you about student loans?

If you get a call from a debt collector, you must verify if they are legitimate by checking directly with your student loan servicer. You can confirm the status of your loan and know if it has been turned over to collections.

Debt collectors are required to legally provide a written validation notice that details the amount owed, the creditor’s name, and your rights. The Federal Trade Commission (FTC) advises that until you get validation information or are already familiar with the debt collector, you should refrain from sharing your personal or financial information.

According to the law, there are limitations as to how and when a debt collector can contact you about your debt. For instance, debt collectors cannot contact you before 8 am or after 9 pm unless you agree to it, and they cannot call you more than seven times within a seven-day period. They also cannot call you within seven days after talking with you by phone about a particular debt.

If you tell debt collectors that you are at work where you are not allowed to get calls, they cannot contact you. They also cannot contact you via email or text message if you demand that they stop. If you ask debt collectors not to privately message you on social media, they have to stop doing so.

Borrowers in default on their student loans sometimes face wage garnishment or tax refund seizure. You must contact your loan servicer immediately and discuss repayment options, and also explain your financial situation.

The Department of Education urges borrowers not to pay for services related to federal student aid. In case a company asks for fees to manage your loans, it is possibly a scam.