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VSAC warns student loan borrowers to watch out for new scam

Fraudsters try to con you out of money and personal identification

WINOOSKI (August 29, 2019)— Vermont Student Assistance Corporation (VSAC) is warning borrowers about a student loan debt relief scam hitting some Vermont borrowers right now.

The scammers claim to be calling from “Vermont Student Assistance” and instructing borrowers that they need to call a company called Riverwalk Debt Solutions in Texas. The principals of this scam company recently pleaded guilty in Maryland to a $550 million Ponzi-type scheme targeting investors and others, according to the Better Business Bureau.

“This is a scam. Plain and simple. Do not call this company. Instead, contact the Vermont Attorney General’s office and VSAC immediately if you think you have been scammed by this outfit or any other who tries to charge fees to help you with your student loans,” said Scott Giles, president and CEO of VSAC.

“Borrowers should never pay for information related to their federal student loans. VSAC’s team of financial aid counselors works with you – at no charge – on a one-on-one basis to answer your questions.”

If you believe you may have received a scam call, contact the Attorney General’s Consumer Assistance Program at 1-800-649-2424 or by e-mailing For questions about student loans, contact VSAC at 1-800-862-3177.

VSAC issued the initial alarm with federal and state regulators five years ago. A new wave of scammers is targeting federal student and parent loan borrowers with promises of having student loans forgiven and convincing people to pay them for information that is free.  VSAC is teaming with Attorney General T.J. Donovan to ensure that no Vermont borrowers fall prey to this scam.

VSAC counsels borrowers. For free. Our financial aid experts walk you through your loan terms; advises you on repayment plans and much more. Call us or stop in at our Winooski headquarters. You aren’t alone on this.

Three things to remember:

  • Never pay a fee for help.
  • Keep your FSA ID private.
  • Call us if you have questions.  

About VSAC – Changing Lives through Education and Training since 1965

Vermont Student Assistance Corporation is a public, nonprofit agency established by the Vermont Legislature in 1965 to help Vermonters achieve their education and training goals after high school. VSAC serves students and their families in grades 7-12, as well as adults returning to school, by providing education and career planning services, need-based grants, scholarships and education loans. VSAC has awarded more than $600 million in grants and scholarships for Vermont students, and also administers Vermont’s 529 college savings plan. Share your VSAC story by email to or submit a video to YouTube. Find us at or check in on Facebook and Twitter. #changing lives