What to Do If Someone Takes Out a Student Loan in Your Name
Identity theft takes various forms, one of which may involve obtaining a student loan in your name. Wouldn’t that be a pleasant surprise!
Since the average student loan balance for the 2017 Class was $ 39,400, we assume that you will want to take care of this. Here’s what to do.
Put a fraud alert on your credit file
Placing a fraud alert on your credit file means lenders will have to take additional steps to verify your identity before new lines of credit can be opened or renewed. You can request an initial fraud warning that runs for 90 days before it is removed, or an extended warning that runs for seven years and requires creditors to contact you personally. If your identity has already been stolen, you will be taken to the extended alert.
To do this, contact the three main credit agencies:
- Equifax : online or call 888-766-0008
- Experian : Online or Call 888-397-3742
- Transunion : online or call 888-909-8872
In order to inform one bureau, it is necessary that they notify the other two, but just in case, call all three yourself.
One more thing to know: when you post an initial warning about your loan, you are entitled to a free copy of each of your three credit reports, in addition to the typical free report you receive every year. When you post an Expanded Alert, you are eligible to receive two free copies of each within a 12-month period, according to the Consumer Financial Protection Bureau .
Alternatively, you can freeze the security of your credit report, which means that lenders will not be able to open new accounts in your name. If you decide to go this route, you need to notify each agency individually.
File a police report
To pay off your debts, you will need a police report to show creditors. To file a police report, bring a copy of your credit report describing the fraudulent debt and contact your local police station.
You can also file a report with the FTC or contact the Social Security Administration .
Dispute errors
With your three credit reports in tow, dispute debt with the agencies. Then contact your lenders – either the federal government if it’s a government loan, or a bank or other private financial institution.
If it is a federal loan, you can probably get it if you have proper proof . You will have to work with a private lender and his process, and you should send them a copy of the police report you have already filed.
And as the Identity Theft Resource Center points out, comb your credit reports for other fraudulent accounts the fraudster may have opened because they probably didn’t stop at student loans.
Contact the school
Contact the school for which the fraudster took out the loan and tell them that it doesn’t really belong to you. Ask them to close the loan and send you an email as soon as they do.
Report the issue to the Department of Education
Finally, you can file a complaint with the Office of the Inspector General of the US Department of Energy online or by calling 800-647-8733. In all of these steps, make sure you write down who you contacted and when, and keep copies of the emails you send and receive.
Here are a few more steps you can take from the FTC.
You cannot prevent fraud 100% of the time, but you can take steps to reduce the likelihood of fraud or detect it right away. For example, make sure you use your free annual credit reports by requesting them from one of the three agencies every four months.
Apps like Credit Karma and other sites also give you access to credit reports throughout the year that you can track. Fraud alerts are also a measure you can take if there is a data breach at a company that has your personal information.