New scam warning for people with student debt

·1 min read

President Joe Biden is still considering some sort of student loan forgiveness program.

People may remember that there has been a pause for most borrowers since the beginning of the pandemic. They don’t have to start paying back their loans again until Aug. 31.

ALSO READ: Student loans: Report says latest plan would forgive $10,000 in student debt

Kevin Clark told Action 9′s Jason Stoogenke that he’s still making loan repayments for two of his children.

“It’s $150,000. So it’s a lot of money,” he said.

That delay is called loan forbearance. Biden is talking about loan forgiveness, which means people wouldn’t have to pay back the money, ever -- a big difference.

ALSO READ: Department of Education approves $415 million in student loan forgiveness for certain students

So, the Federal Trade Commission issued an alert a few days ago, warning borrowers to watch out for scammers who may try to get them to apply for forgiveness programs that don’t exist yet.

Advice from Action 9:

Be suspicious if someone contacts you out of the blue, offering student loan help, especially if they want you to pay for the service. There are already some federal forgiveness programs, such as for certain public servants.

(WATCH BELOW: Student debt crisis: Many students overlook community colleges)