Student loan forgiveness scams have begun

Student loan forgiveness scams have begun

By Greg Collier

Around this time last week, we posted a warning about how scammers were more than likely looking to take advantage of the new student debt forgiveness program that was recently issued by the government. Well, the scammers didn’t wait long, as we already have reports of scammers trying to take advantage of the confusion surrounding the new plan.

According to the Better Business Bureau, they’ve already begun receiving complaints about student loan scammers. In one instance of the scam, scammers are leaving voicemails with their potential victims, identifying themselves with generic names like ‘the Biden student loan forgiveness program’. If someone were to call the number back, the person on the other line would start requesting personal and financial information. This would no doubt lead to instances of identity theft.

In another version of the scam, scammers posing as the loan forgiveness program will try to have victims pay a fee. The scammers might even try to get victims to direct their loan payments to the scammers’ bank account.

There are two things to keep in mind with these scams. The first one is that the government is not going to reach out to you to see if you qualify for student debt forgiveness. It will also not be applied to your debt automatically. You need to reach out to the government to see if you qualify. The other thing to keep in mind, is that there is no fee to apply for the debt forgiveness. Anyone who asks you for a fee or payment is trying to scam you.

As we said previously, the best way to protect yourself is to not accept loan forgiveness offers from strangers. Whether it’s over the phone, through social media, or any other form of communication, if they approach you first, they are not from the government. And again, you can also better protect yourself by not only learning if you qualify for the new program, but how the process works. 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.