Greg's Corner

After White House announcement, student loan forgiveness scams are on the rise

By Greg Collier

In the realm of student loans and debt relief, hope can often be overshadowed by the looming burden of repayment. So, when news breaks of potential relief programs, it’s no wonder that many eagerly await updates. However, amidst this anticipation, lurks another group who is tuned into student loan debt forgiveness news, scammers.

Recently, the White House announced plans for potential student debt relief for millions of borrowers. While this news offers a glimmer of hope, it also opens the door for scammers seeking to prey on vulnerable individuals. For example, fraudulent emails have emerged offering debt forgiveness under the guise of new guidelines.

Some have received emails purportedly from the “Student-Loan Debt Department,” informing them of eligibility for forgiveness. Alarmingly, the emails state that their cases would be closed within a day if they didn’t respond promptly. Upon closer examination, several red flags emerged, indicating a scam in progress.

First and foremost, the term “Student-Loan Debt Department” raised suspicion. A quick search revealed its absence from official government channels, with accusations labeling it a scam.

Further investigation exposed other telltale signs of a scam. The email originated from suspicious addresses, lacking affiliation with the U.S. Department of Education or its authorized partners. Additionally, the inclusion of a mailing address in Albuquerque, NM, raised eyebrows, as the Department of Education has no presence there.

Typos and grammatical errors within the email also hinted at its fraudulent nature. The misuse of phrases like “Student-Loan Debt Department” and “StudentLoans” instead of proper terms underscored the scam’s amateurish nature. Moreover, the email’s urgent tone, pressuring recipients to act swiftly, mirrored common tactics employed by scammers.

This also disregards the fact that the White House has merely announced its intentions regarding student debt relief. There is no official plan in place, let alone one that has been implemented or finalized.

Legitimate communications regarding student loan forgiveness will typically come from recognized addresses associated with government agencies or authorized partners. When in doubt, verify the information provided in the email through official channels. Government websites or loan servicers can confirm the legitimacy of forgiveness programs and communications.

Also, please keep in mind, legitimate avenues for debt relief do not require payment. Avoid falling prey to scams that demand fees or payments for accessing forgiveness programs.