The Federal Trade Commission is warning Americans about an ongoing scam regarding student loan forgiveness.
President Joe Biden extended the pause on student loan payments and announced up to $20,000 in federal student loan forgiveness for some borrowers last month. Almost immediately, the fraudulent phone calls from con artists began, Sandra Guile, a spokesperson for the Cincinnati Better Business Bureau said.
“It’s an unsolicited phone call, a weird email or a text message that you receive from a number you’re not familiar with, and it’s a person who may claim to be from the government or with a financial institution,” Guile explained.
Here are some potential signs of a scam:
- The scammer may say your eligibility for student loan forgiveness is expiring or that you need to pay a fee to qualify for debt cancellation. They may also ask you to redirect your loan payments to them.
- Callers often ask for personal information, such as your social security number, financial information or Federal Student Aid identification number.
- Scammers may also impersonate phony or legitimate agencies.
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“That should be raising those little red bells,” Guile said. “Pause the conversation, ask who they are and who they’re with, and then go to the BBB scam tracker and look them up.”
The Better Business Bureau…
