FILE PHOTO: Consumer Financial Protection Bureau Director Richard Cordray speaks in Washington, October 17, 2014. REUTERS/Larry Downing
By Karen Stokes
Last month, President Biden announced a plan to wipe out significant amounts of student loan debt for 40 million Americans now federal officials are warning about scams.
The administration’s forgiveness program will cancel up to $20,000 in student loan debt for borrowers making less than $125,000 or $250,000 for households. The plan is projected to cost $400 billion.
On Wednesday, the White House announced ongoing and expanded efforts across the Administration to combat scams and misinformation, including educating borrowers about how to protect themselves against scams and accelerating efforts to share scam complaints with states.
“We are doing a lot of things and it’s really what we would call an all government approach,” said Richard Cordray, COO of Federal Student Aid. “We will be regularly providing complaint reports to state officials to identify scams operating in their state, and working with state attorney generals and state officials.”
One of the most critical ways to prevent scams and protect borrowers from being taken advantage of is developing a clear, simple, and secure site for borrowers to apply for debt relief and have the most up to date information from trusted sources, such as the Department of Education (ED), Federal Student Aid and other Administration agencies. In addition to this work,…
