Scammers take advantage of President Biden's Student loan forgiveness plan | Wallet Warning
Scammers are never ones to miss an opportunity.
Within hours of President Biden’s announcement of the federal student loan forgiveness program, people were being bombarded by scammers through a variety of means including phone calls, emails, texts and social media ads. The scripts the scammers use are pretty convincing on the surface. Some are spoofing phone numbers, adding official sounding department names to Caller ID and/or logos and titles to texts, emails and ads. They make it appear like help is coming directly from the government.
This is happening in Shelby County as well
Many local citizens reported that the caller wanted their Social Security Number supposedly to see if they were eligible, or wanted them to pay a fee to go to the head of the line. The calls that were reported to our partners at the Better Business Bureau (BBB) came from 833 and 314 area codes, and the Caller ID said “Student Loan Center” or “Education Department.”
Facts: You don’t need to pay anybody to sign up for the new program or for the extended pause in payments, and nobody can get you in early or guarantee eligibility. The program isn’t even up and running yet. The US Department of Education (DOE) will announce when borrowers can apply. The earliest that will be is October. As you wait for more information, beware of anyone trying to charge you to get that debt relief. That means it’s a scam. A real government agency will NEVER ask for an advanced processing fee.
The BBB has compiled a list of tips for avoiding Student Loan Forgiveness scams:
Get to know the terms of your student loan and the relief program before acting. Always do your research before sharing personal information. Be sure to understand the ins and outs of your specific loan, as well as how student loan relief impacts you. Go straight to official government websites, such as ED.gov and studentaid.gov, for information.
Never pay money for a free government program. Scammers often trick victims into paying for free government programs – or they claim you can get additional benefits, faster benefits, etc., for a fee. A real government agency will not ask for an advanced processing fee. These are all red flags of a scam.
Be wary of out-of-the-blue calls, emails or text messages claiming to be from the government. In general, the government will not contact you using these methods unless you grant permission.
Watch out for phony government agencies or programs. If you speak to someone claiming to be a government representative who is offering you student loan relief, do some research before you agree to anything. Scammers often make up look-alike government websites that sound similar to legitimate agencies or programs.
Think something seems suspicious? Reach out to the agency directly. If you have any concerns about an alleged government representative's legitimacy, hang up the phone or stop emailing/texting. Then, find the official contact information (look on ED.gov and studentaid.gov or other official sites) and call to verify. Then, report the suspicious calls or messages.
Be careful, even if the information comes from a friend. Even if a close friend or family member you trust sent you the information regarding student loan relief, make sure the claims are real first. During the COVID-19 pandemic, BBB received many reports of hacked social media accounts being used to spread government impostor scams.
Our goal with Wallet Warnings remains the same - to help you safeguard your money. If you have any questions or need any additional information about anything discussed here, please call (901) 222-0206. We are happy to help you avoid scams, fraud and predatory lenders.
Regina Newman is Shelby County Trustee.
This article originally appeared on Memphis Commercial Appeal: Shelby County residents bombarded by student loan forgiveness scams
