The Biden administration announced last Wednesday that it would be forgiving up to $20,000 in undergraduate student loans.
Some borrowers have already seen their accounts updated, but others will have to apply for the benefit in October.
That amount may not clear the accounts for all, though, and scammers may be on the prowl promising to help eliminate any remaining debt.
Do not pay any up-front fees
It is illegal for student debt relief companies to charge you before administering a service, the Federal Trade Commission says.
Don’t sign up for quick loan forgiveness
Anyone who guarantees your eligibility for student loan forgiveness or promises they can get your loans forgiven faster than the timeline the Department of Education has laid out is a scammer.
Don’t always trust a Department of Education logo
Scammers may use logos, names and seals to persuade you of their legitimacy. But if you have questions about your federal loans, visit the Department of Education’s official financial website at https://studentaid.gov/.
Don’t be rushed into a decision
Scammers will often make requests that are supposedly time-sensitive — such as missing a deadline to qualify for repayment plans, loan forgiveness programs or federal loan consolidations — in an effort to make you act quickly.
Never share your Federal Student Aid ID
Scammers may ask for your FSA ID in an effort to steal your identity, but you should…
