Lance's Corner

NYSDOS Issues Alert on Student Loan Scams

Oct 8, 2024

Per the notice below, the New York State Department of State (NYSDOS) has issued an alert about student loan scams.

The New York Department of State’s Division of Consumer Protection Warns Student Loan Borrowers to Avoid Scams and Negative Credit Reporting Consequences

As the Federal Student Loan Grace Period Has Ended, Student Loan Borrowers Should Check the Status of Their Loans to Avoid Negative Credit Impacts

Student Loan Borrowers are Reminded to Only Use Trusted Government Websites and Beware of Fake Offers from Scammers Impersonating the U.S. Department of Education

Secretary Mosley: “With big changes happening to the federal student loan repayment process, it’s important for borrowers to understand which sources they can trust for information and assistance so they don’t fall victim to a scam or end up with negative impacts to their credit score.”

As the federal student loan grace period has now ended, the New York Department of State’s Division of Consumer Protection is warning student loan borrowers to avoid scams and negative financial and credit reporting consequences while navigating the loan repayment process.  Any late or missed federal student loan payments can now be reported to the credit bureaus, which can lead to severe negative consequences for borrowers who are unable to make payments.  Federal student loan borrowers having difficulty making payments will need to take important steps to avoid these negative financial or credit reporting consequences.  Borrowers should also be aware of potential scammers who may take advantage of consumers who are seeking assistance with repayment.

“With big changes happening to the federal student loan repayment process, it’s important for borrowers to understand which sources they can trust for information and assistance so they don’t fall victim to a scam or end up with negative impacts to their credit score,” said Secretary of State Walter T. Mosley.  “I encourage all student loan borrowers to take the time to check the current status of their loans now that the grace period has ended.  And if any borrowers find they can’t afford payments, they should work directly with their loan servicer to help prevent significant financial and credit reporting consequences.”

Federal student loan payments resumed in October 2023 after a three and a half year-long pause caused by the COVID-19 pandemic.  Since then, federal student loan borrowers benefited from a temporary twelve-month grace period protecting them from being reported to credit bureaus as delinquent for missed payments.  Starting on October 1, 2024, any late or missed federal student loan payments can be reported to the credit bureaus.  This can have significant financial and credit reporting consequences, including:

  • Missed or late payments can adversely affect your credit score.  This negative information stays on your credit report for seven years.
  • A drop on your credit score can make it harder for you to get approved for credit cards, home or car loans, housing and other important needs that require credit checks.
  • Continued missed payments can put your loan into default, which comes with more negative consequences, including withholding of federal tax refund, garnishment of wages, or loss of eligibility to receive deferment, forbearance or additional federal student aid.

HERE’S HOW TO PROTECT YOURSELF:

Understand the Repayment Process:

  • Stay updated with trusted information and sources: The U.S. Department of Education’s webpage provides borrowers with the most accurate and up-to-date information about federal student loans.  They also recommend logging in to your StudentAid.gov account to ensure your contact information is up to date and to sign up for alerts for when new information becomes available.
  • Review the details of your loan: Make sure you know who your loan servicer is and how to contact them.  Check that your servicer has your correct contact information so you can stay up to date with communications.  Review the details of your loan to make sure you understand your monthly payment amount, due dates and other details specific to your loan.
  • Don’t forget to regularly monitor your credit report and score: As you begin the repayment process, stay one step ahead and make it a routine to check on your credit report and look for inconsistencies.  Visit annualcreditreport.com or call 1-877-322-8228 to get your free reports.
  • Looking for help navigating your student loans?  EDCAP (Education Debt Consumer Assistance Program) is an independent, New York State funded, nonprofit program of the Community Service Society of New York that helps New Yorkers navigate the student loan system.  They offer free, one-on-one counseling with their student loan experts.  Visit the website at edcapny.org, call (888) 614-5004, or e-mail at edcap@cssny.org for more information.
  • What if I can’t afford my payment?  If you are having trouble making your monthly payment, contact your loan servicer immediately to discuss your options.  Visit StudentAid.gov for more information on your options if you are having difficulty making payments.

    Beware of Fake Communications from Scammers:
  • Don't trust any person or program that promises you special access or guaranteed eligibility for loan forgiveness: You might be contacted by a scammer saying they will help you get your loan cancelled or reduced for a fee.  You will never need to pay for advice or help with your federal student loans or any deferment or income-based plans.  All federal student loan borrowers can stay updated at no cost by contacting the U.S. Department of Education directly at StudentAid.gov.  If you’re contacted unexpectedly with any of these offers, it's a scam.
  • Be wary of scammers that make false claims about your account or your loan forgiveness or say you have an incomplete application: If you have any questions about your loan or loan forgiveness, go directly to StudentAid.gov and your loan servicer’s website to access your account and confirm any details.
  • Protect yourself from phishing scams: If you didn’t initiate the communication, don’t share your personal information.  Keep your personal information, including your Federal Student Aid ID and social security number private.  The U.S. Department of Education will never call or text you with a request of confidential information.  Make sure you work only with the U.S. Department of Education and never reveal your personal information or account password to anyone.  Genuine e-mails to borrowers will only come from noreply@studentaid.gov; noreply@debtrelief.studentaid.gov; and ed.gov@public.govdelivery.com.
  • If you encounter a scam, report it: Contact the official Federal Student Aid website to file a complaint, or contact the Federal Trade Commission.  The U.S. Department of Education offers additional tips and resources here.  You can also contact your loan servicing company or the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X, and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics.  Sign up to receive consumer alerts directly to your e-mail or phone here.  The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own.  The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection.  The Division can also be reached via X at @NYSConsumer or Facebook.

USDOL Issues Comprehensive Employer Guidance on Long COVID

The United States Department of Labor (USDOL) has issued a comprehensive set of resources that can be accessed below for employers on dealing with Long COVID.

Supporting Employees with Long COVID: A Guide for Employers

The “Supporting Employees with Long COVID” guide from the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) and Job Accommodation Network (JAN) addresses the basics of Long COVID, including its intersection with mental health, and common workplace supports for different symptoms.  It also explores employers’ responsibilities to provide reasonable accommodations and answers frequently asked questions about Long COVID and employment, including inquiries related to telework and leave.

Download the guide

Accommodation and Compliance: Long COVID

The Long COVID Accommodation and Compliance webpage from the USDOL-funded Job Accommodation Network (JAN) helps employers and employees understand strategies for supporting workers with Long COVID.  Topics include Long COVID in the context of disability under the Americans with Disabilities Act (ADA), specific accommodation ideas based on limitations or work-related functions, common situations and solutions, and questions to consider when identifying effective accommodations for employees with Long COVID.  Find this and other Long COVID resources from JAN, below:

Long COVID, Disability and Underserved Communities: Recommendations for Employers

The research-to-practice brief “Long COVID, Disability and Underserved Communities” synthesizes an extensive review of documents, literature and data sources, conducted by the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) on the impact of Long COVID on employment, with a focus on demographic differences.  It also outlines recommended actions organizations can take to create a supportive and inclusive workplace culture for people with Long COVID, especially those with disabilities who belong to other historically underserved groups.

Read the brief

Long COVID and Disability Accommodations in the Workplace

The policy brief “Long COVID and Disability Accommodations in the Workplace” explores Long COVID’s impact on the workforce and provides examples of policy actions different states are taking to help affected people remain at work or return when ready.  It was developed by the National Conference of State Legislatures (NCSL) as part of its involvement in USDOL’s State Exchange on Employment and Disability (SEED) initiative.

Download the policy brief

Understanding and Addressing the Workplace Challenges Related to Long COVID

The report “Understanding and Addressing the Workplace Challenges Related to Long COVID” summarizes key themes and takeaways from an ePolicyWorks national online dialogue through which members of the public were invited to share their experiences and insights regarding workplace challenges posed by Long COVID.  The dialogue took place during summer 2022 and was hosted by USDOL and its agencies in collaboration with the Centers for Disease Control and Prevention and the U.S. Surgeon General.

Download the report

Working with Long COVID

The USDOL-published “Working with Long COVID” fact sheet shares strategies for supporting workers with Long COVID, including accommodations for common symptoms and resources for further guidance and assistance with specific situations.

Download the fact sheet

COVID-19: Long-Term Symptoms

This USDOL motion graphic informs workers with Long COVID that they may be entitled to temporary or long-term supports to help them stay on the job or return to work when ready, and shares where they can find related assistance.

Watch the motion graphic

A Personal Story of Long COVID and Disability Disclosure

In the podcast “A Personal Story of Long COVID and Disability Disclosure,” Pam Bingham, senior program manager for Intuit’s Diversity, Equity and Inclusion in Tech team, shares her personal experience of navigating Long COVID symptoms at work.  The segment was produced by the USDOL-funded Partnership on Employment and Accessible Technology (PEAT) as part of its ongoing “Future of Work” podcast series.

Listen to the podcast

HHS OIG Issues Annual Report on State MFCUs

Per the notice below, the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS) has issued its annual report on the performance of state Medicaid Fraud Control Units (MFCUs).

Medicaid Fraud Control Units Fiscal Year 2023 Annual Report (OEI-09-24-00200) 

Medicaid Fraud Control Units (MFCUs) investigate and prosecute Medicaid provider fraud and patient abuse or neglect. OIG is the Federal agency that oversees and annually approves federal funding for MFCUs through a recertification process. This new report analyzed the statistical data on annual case outcomes—such as convictions, civil settlements and judgments, and recoveries—that the 53 MFCUs submitted for Fiscal Year 2023.  New York data is as follows:

Outcomes

  • Investigations1 - 556
  • Indicted/Charged - 9
  • Convictions - 8
  • Civil Settlements/Judgments - 28
  • Recoveries2 - $73,204,518

Resources

  • MFCU Expenditures3 - $55,964,293
  • Staff on Board4 - 257

1Investigations are defined as the total number of open investigations at the end of the fiscal year.

2Recoveries are defined as the amount of money that defendants are required to pay as a result of a settlement, judgment, or prefiling settlement in criminal and civil cases and may not reflect actual collections.  Recoveries may involve cases that include participation by other Federal and State agencies.

3MFCU and Medicaid Expenditures include both State and Federal expenditures.

4Staff on Board is defined as the total number of staff employed by the Unit at the end of the fiscal year.

Read the Full Report

View the Statistical Chart

Engage with the Interactive Map

GAO Issues Report on Medicaid Managed Care Service Denials and Appeal Outcomes

The United States Government Accountability Office (GAO) has issued a report on federal use of state data on Medicaid managed care service denials and appeal outcomes.  GAO found that federal oversight is limited because it doesn't require states to report on Medicaid managed care service denials or appeal outcomes and there has not been much progress on plans to analyze and make the data publicly available.  To read the GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the first link below.  To read GAO highlights of the report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the second link below.
https://www.gao.gov/assets/d24106627.pdf  (GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes)
https://www.gao.gov/assets/d24106627_high.pdf  (GAO highlights on federal use of state data on Medicaid managed care service denials and appeal outcomes)

CMS Issues Latest Medicare Regulatory Activities Update

The Centers for Medicare and Medicaid Services (CMS) has issued its latest update on its regulatory activities in the Medicare program.  While dentistry is only minimally connected to the Medicare program, Medicare drives the majority of health care policies and insurance reimbursement policies throughout the country.  Therefore, it always pays to keep a close eye on what CMS is doing in Medicare.  To read the latest CMS update on its regulatory activities in Medicare, use the link below.
https://www.cms.gov/training-education/medicare-learning-network/newsletter/2024-03-14-mlnc