If you keep getting calls or voicemails demanding you to “apply for student debt relief before the program is discontinued,” you are likely the recipient of a scam call – don’t pick up.
It’s been almost two months since President Joe Biden announced his plan for student loan forgiveness, and scam calls have been on the rise ever since, luring borrowers to pay fake application fees and provide personal information for their financial gain.
The one-time cancellation program could waive up to $20,000 in student loan debt for eligible borrowers. And while U.S. Department of Education officials said it expects an application form to go live sometime in October, a court case challenging the initiative could delay when borrowers actually get relief, potentially making them more vulnerable to scams.
“Unfortunately, many aspects of financial aid for students are the target of scammers and bad actors primarily because it’s so prevalent in the news that these bad actors see an opportunity to potentially make some illegal money,” said Dana Kelly, vice president of the professional nonprofit group, National Association of Student Financial Aid Administrators.
Oftentimes, scammers demand borrowers to apply for relief immediately or ask for their Federal Student Aid identification information. These are just a few signs you are being scammed.
Here’s what else to watch out for, how to avoid being scammed and what to do if you have fallen prey to a…
