- Applications for President Joe Biden’s student loan debt relief plan are set to open in early October.
- It’s critical for borrowers to know signs of scams so they can safely get the relief they’re looking for.
- Student loan scammers aren’t anything new – but federal officials are warning people to be extra cautious.
With applications for President Joe Biden’s student loan debt relief plan right around the corner, federal officials are warning about scams.
On Wednesday, the White House shared its plans to crack down on student loan scammers nationwide. The administration also pointed to guidance for borrowers to avoid fraud in connection to the president’s one-time debt cancellation plan.
Biden announced in August that his administration would cancel $10,000 in student loan debt for federal borrowers with incomes less than $125,000 (or households earning $250,000), as well as $20,000 for Pell Grant recipients.
The program is expected to aid about 40 million people, the White House said. Borrowers can’t apply for forgiveness yet, but the application is expected to become available early this month.
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Scammers may try to take advantage of this moment, obtaining borrowers’ personal information to bilk people hoping for this debt relief, or worse, clean out their bank accounts. For borrowers who qualify for forgiveness, it’s critical to know the signs of fishy phone…
