Student loan forgiveness: Agencies warn of potential rise in scams

WHIO Staff
·1 min read
9

As discussions continue around the Biden Administration’s student loan forgiveness plan, organizations are warning about the potential of scams aimed at tricking those who may be eligible.

President Joe Biden unveiled a plan to forgive as much as $20,000 of student loan debt for some Americans Wednesday. In addition, he extended the pause on federal loan repayments to Dec. 31, 2022.

On Friday, the Federal Trade Commission warned of scammers who may be looking to take advantage of those looking for more information about the forgiveness plan.

>> Biden announces plan to forgive student loan debt, extend repayment pause

The FTC noted that there is no need to do or pay for anything or anyone in order to sign up for the program.

“Nobody can get you in early, help you jump the line, or guarantee eligibility. And anybody who says they can — or tries to charge you — is (1) a liar, and (2) a scammer,” FTC officials said.

Additionally, the Better Business Bureau offered tips to avoid student loan forgiveness scams:

  • Get to know the terms of your student loans and the relief program before acting

  • Never pay money for a free government program

  • Be wary of out-of-the-blue calls, emails or text messages claiming to be from the government

  • Watch out for phony government agencies or programs

  • Think something seems suspicious? Reach out the the agency directly

  • Be careful, even if the information comes from a friend

>> Student loan forgiveness: What you need to know about the plan

The FTC also suggested checking with your federal loan servicer and make sure you have their most recent contact information.

If you believe you’ve discovered a scam, report it at ReportFraud.ftc.gov or BBB.org/ScamTracker.