Greg's Corner

Are there more student loan forgiveness scams on the horizon?

By Greg Collier

Student loan forgiveness scams are nothing new. However, experts are warning that we’re about to see a drastic increase in them. This is because the White House recently announced a debt forgiveness plan that will assist many in reducing or eliminating their student loan debt. But with any form of government assistance comes two things, confusion and red tape. It’s the confusion that will bring all manner of scammers out of the shadows.

In the past, student debt scammers have texted, emailed, and called their victims offering to help reduce the remainder of the victim’s loan. Some scammers have even taken to social media messaging to try to lure victims into a false sense of security. Legitimate debt forgiveness programs will not contact you. You will have to contact them.

There are a number of scams that these con artists can pull on a victim. There’s the advance fee scam, where the scammers will ask for an upfront payment before assisting someone. In reality, they’re just after the payment. If you qualify for the new student loan relief program, there is no fee associated with it. If someone promises they can help you get the government’s debt relief and asks for a fee, they’re trying to steal your money.

Then there’s identity theft. Some scammers will be out to get your personal and financial information rather than a payment. It’s especially important not to give your Federal Student Aid ID to anyone who solicits you with an offer of assistance. This information can be used to steal your identity and could end up adding more debt than just your student loans.

One of the best ways to protect yourself from these scams is to not accept offers from random strangers on the internet. You can also better protect yourself by not only learning if you qualify for the new program, but how the process works as well. CNBC has a great article on eligibility for the program, but you can also go to the Federal Government’s Student Aid website for further information.