In the coming days, millions of student loan borrowers will be able to apply for up to $20,000 student loan debt relief, but the White House is concerned some will use it as an opportunity to scam.
As part of its efforts, the Biden administration released a “do’s and don’ts” list to avoid becoming scammed.
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The list of “don’ts” includes:
Don’t pay anyone who contacts you with promises of debt relief or loan forgiveness. YOU DO NOT NEED TO PAY ANYONE TO OBTAIN DEBT RELIEF. The application will be free and easy to use when it opens in October.
Don’t reveal your FSA ID or account information or password to anyone who contacts you. The Department of Education and your federal student loan servicer will never call or email you asking for this information.
Don’t ever give personal or financial information to an unfamiliar caller. When in doubt, hang up and call your student loan servicer directly. You can find your federal student loan servicer’s contact information at Studentaid.gov/manage-loans/repayment/servicers.
Don’t refinance your federal student loans unless you know the risks. If you refinance federal student loans that are eligible for debt relief into a private loan, you will lose out on important benefits like one-time debt relief and flexible repayment plans for federal loans.
The list of “do’s” includes:
Do sign up at www.ed.gov/subscriptions to be notified when the Student Loan Debt Relief application becomes available.
Do create an FSA ID at…
