Student loan debt relief scammers are already tricking people: What to watch for

Sometimes, you wonder how people get caught up in some scams. And then you realize, sometimes people get the flu and aren't on top of their game. Or they're in a hurry. Or things just change so much that it gets hard to keep up with what's legitimate and what's not.

Take the latest Biden administration effort to bring widespread student loan forgiveness to millions of borrowers.

Scammers love to jump on any chance to take advantage of consumers when something is new or confusing. And there have been all sorts of developments relating to student loan forgiveness. On Thursday, President Joe Biden tweeted that about 26 million people already applied for federal student loan forgiveness. The application went online at StudentAid.gov on Oct. 17, after some beta testing earlier.

But debt relief isn't being processed as the courts deal with legal challenges to the program. Six GOP-led states earlier brought a lawsuit against the Biden administration to try to halt the sweeping forgiveness plan, charging that the administration overstepped its executive powers.

But the scammers? They're not missing a step.

On Thursday, the Federal Communications Commission warned consumers about a potential uptick in robocalls relating to student loan debt relief. "Scammers might use the calls to pressure consumers to make a payment or provide private information," according to the alert.

The Better Business Bureau's Scam Tracker report system already has begun hearing from consumers who have received phone calls from someone claiming to offer help with student loan forgiveness.

Phone calls? There's a clue to a scam right there. It's a do-it-yourself, online application at StudentAid.gov.

How do you spot a scam?

The con artist on the phone might sound real because they're rattling off some of your key information, maybe they know your name or where you went to college.

But wait, did you post a bunch of pictures of yourself on social media in a college sweatshirt when you went to a football game?

The thing about scammers — and one that you might forget when you're not feeling well or in a rush — is that they often make sure to have some data in advance about you to sound as convincing as possible. They can tap into public databases, peek at social media accounts, and access data on the Dark Web and elsewhere.

The scammer might insist that he or she is able to help eliminate tens of thousands of dollars in college debt. One consumer, according to the BBB, was told that $60,000 in student loans would be wiped away — which is far beyond the maximum of up to $20,000 that's being offered as part of the federal student loan debt forgiveness for those who had Pell Grants in college.

Another clue: The promised deal sounds way too good to be true.

More:Federal student loan borrowers need to plan ahead if payments restart in January

One consumer complained to the BBB Scam Tracker that the caller "not only had my email address but also the name of the school I attended and the last four digits of my Social Security number." Another victim reported that the scammers "somehow knew my FAFSA account info and made me believe they work in conjunction with the loan forgiveness program."

They know just enough to make you think that maybe this is the way things are being done.

And they make you feel like you better act now or you'll miss out on the best chance ever.

Some common robocall campaigns, according to the FCC, claim to be from a so-called “student loan forgiveness center” or from a state-based forgiveness center. Don't trust any caller ID as crooks confuse consumers by making it appear that they're calling from legitimate phone numbers.

The FCC is asking phone companies to heighten their vigilance and block student loan debt scam robocalls.

Lauren Schalk, a spokeswoman for the Better Business Bureau Serving Eastern Michigan, warns that consumers never want to confirm information with someone who calls out of the blue. And you don't want to offer more information, such as the rest of their Social Security number, even if someone has the last four digits.

Student loan forgiveness is such a hot topic right now, Schalk said, that consumers need to realize that scammers will take advantage of all the uncertainty that's out there.

"They're not going to call you," she said of the legitimate student loan forgiveness program.

"If you're getting a phone call from somebody, that's a red flag right there."

Don't ever give the caller your Social Security number or the rest of your number. Don't give anyone your FSA ID username or password. Don't pay anyone to apply for student loan forgiveness; it's a free process. When you apply, you're not being asked for your bank account information or credit card number.

Do not pay any fees to receive student loan forgiveness. One consumer in California reported losing $400 that supposedly was required for paperwork to cancel a student loan, according to a Scam Tracker report. Another reported losing $274; another lost $500.

Some messages say the offer will "expire soon," according to consumers. But there's no need to rush — or call these folks back.

What's the real deal for student loan forgiveness?

The real way to apply for student loan forgiveness is to go to StudentAid.gov/DebtRelief. The application process remains open. Many suggest applying as soon as you can, if you qualify.

Income limits apply — an individual's income must be less than $125,000. The income for married couples must be less than $250,000. The income being used is for 2020 or 2021. The income requirements are based on your adjusted gross income, which tends to be lower than your total income.

You have until Dec. 31, 2023, to apply.

When you go online to StudentAid.gov, you are being asked to provide your name, birth date, Social Security number, phone number and address as part of the application for student debt relief. You will not need to upload or attach any documents. You do not fax any tax returns or paperwork when applying.

The Federal Trade Commission warned that scammers might send fake emails during this time implying that they're involved in the debt relief process.

Once you apply for debt relief, the U.S. Education Department might send you an email, the FTC stated. The email at some point down the line could even ask you to upload tax documents verifying your income.

But the real emails will only come from noreply@studentaid.gov, noreply@debtrelief.studentaid.gov, or ed.gov@public.govdelivery.com.

"Pay close attention to the sender address for emails about loan forgiveness — looking for slight typos — to avoid a scammer’s fake emails," the FTC stated.

You can report scams at ReportFraud.ftc.gov or BBB.org/scamtracker. In Michigan, you can also report scams to the local BBB at 866-788-5706. And you can report robocalls to the FCC at Consumercomplaints.fcc.gov.

Contact Susan Tompor: stompor@freepress.com. Follow her on Twitter @tompor. To subscribe, please go to freep.com/specialoffer. Read more on business and sign up for our business newsletter.

This article originally appeared on Detroit Free Press: Student loan forgiveness scammers make you think scheme is legit