How to protect yourself from loan forgiveness fraud

Law enforcement is warning student loan borrowers to be on the lookout for scammers as they seek debt relief under President Biden’s new plan.

More than 40 million Americans could see their student loan debt reduced — and in many cases eliminated — under the forgiveness plan Biden announced Wednesday.  Biden is erasing $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households that earn less than $250,000. He’s canceling an additional $10,000 for those who received federal Pell Grants to attend college.

The cancellation applies to federal student loans used to attend undergraduate and graduate school, along with Parent Plus loans. Current college students qualify if their loans were issued before July 1. For dependent students, their parents’ household income must be below $250,000.

RELATED: Georgia man wiped out $48M in student loans with disabled veterans scam, officials say

With new government aid comes new potential scammers — here are some tips from the Michigan Attorney General’s Office and the U.S. Department of Education on how to avoid potential student loan forgiveness scams and theft.

Tips to avoid student loan scammers

  • Don’t provide your…

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