Greg's Corner

Now is really the time to look out for student debt scams

By Greg Collier

Ever since the government announced its student debt forgiveness program, we’ve been warning those eligible for the program to be on the lookout for scammers. This past Monday, it was announced that the application process is finally open. Along with that announcement, both The White House and the Federal Trade Commission have issued warnings about student debt forgiveness scammers and how to try to avoid them. We’re going to go over some of the warning signs so hopefully those who need relief the most won’t fall deeper into debt.

The first thing to keep in mind is that the program is free. Scammers will either tell you that there’s a charge for the application or that they can fast track your application for a fee. Neither of these things are true.

Another red flag is if someone approaches you about applying for the program. If you receive a voicemail or robocall from someone claiming to be from an organization with a generic name like ‘the Biden student loan forgiveness program’, they’re scammers. You have to apply first at the Federal Student Aid website at StudentAid.gov. Any form of communication that approaches you before you apply is probably trying to steal your personal and financial information.

Scammers like to prey on confusion, and the government isn’t exactly helping themselves in that department. After you apply for the program, you may receive emails from the following government email addresses. Those include noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com. Carefully check the email addresses on the emails you might receive. Scammers will try to use similar looking addresses to fool you into divulging personal information.

Lastly, the application process does not ask you to upload any financial documents or give any banking information. While some applicants may be asked for financial records later on in the process, they will not be asked for them while filling out the application. You will also not be asked for your Federal Student Aid number.

You can read more about student debt forgiveness scams at the Federal Student Aid website.