Avoiding Student Loan Forgiveness Scams as Biden Mulls Decision

As students await a decision from U.S. President Joe Biden on a possible extension of the pause on student loan payments, industry observers have warned of possible scams associated with these payments.

Last week, 100 House and Senate members signed a letter calling on Biden to extend the current pause on student loan payments past August 31. Former President Donald Trump first paused these payments during the beginning of the ongoing COVID-19 pandemic and Biden followed suit, extending it until the end of this month.

White House press secretary Karine Jean-Pierre recently told reporters that Biden will soon “make a decision” on possibly extending the pause once again. “I’ll let him speak,” Jean-Pierre said.

However, as Biden is currently mulling the decision, some have reported receiving scam calls associated with student loan forgiveness programs.

Many have warned of possible student loan forgiveness scams ahead of President Joe Biden’s decision to possibly extend the pause on loan payments. Above, student loan debt holders take part in a demonstration outside of the White House staff entrance to demand that Biden cancel student loan debt, on July 27 in Washington, D.C.
Jemal Countess/Getty

WATE-TV reporter Don Dare recently received one of these scam calls and reported it to the Better Business Bureau (BBB) in Tennessee. 

”The reason we are calling is because your student loan is eligible for a forgiveness program. We need your authorization to complete the process….

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