STATEN ISLAND, N.Y. — Millions of Americans will feel some relief thanks to the student loan forgiveness program recently announced by the Biden administration — but it also creates an opportunity for scammers, the Better Business Bureau (BBB) warns.
Students are eligible for up to $20,000 in federal loan debt relief if they meet the income threshold. As student loan holders navigate the program, the Better Business Bureau explained that con artists will be there to take advantage of any confusion.
Here are some tips to avoid student loan forgiveness scams, according to the BBB.
Know the terms of your student loan and relief program first
It’s important to always do your research before sharing any personal information. Be sure to understand the ins and outs of your specific loan, as well as how the relief program impacts you.
Make sure you’re eligible for relief. You’re eligible for student loan debt relief if your annual federal income was below $125,000 (individual or married, filing separately) or $250,000 (married, filing jointly or head of household) in 2021 or 2020. You can get up to $20,000 in debt relief if you received a Pell Grant in college and meet the income threshold. If you did not receive a Pell Grant in college and fail to meet the income threshold, you’ll be eligible for up to $10,000 in debt relief.
You might have to research who your current loan servicer is, as it may have changed.
Visit the official government websites directly, such as ED.gov…
