Millions of Americans may be eligible for up to $10,000 in federal loan forgiveness (and up to $20,000 if they received Pell Grants) thanks to an announcement from President Joe Biden last week. This news has been a cause for celebration for some and anger for others, as most major political moves are, but it’s also creating a setting that is absolutely perfect for scammers. Here’s how to avoid any loan-forgiveness-related scams.
Know exactly how to get your forgiveness if you qualify
The first step in avoiding scams is knowing if you’re even eligible for the student loan forgiveness. Under the Biden administration’s plan, individual loan borrowers making up to $125,000 annually and married couples or heads-of-household making up to $250,000 may be eligible for up to $10,000 of forgiveness. If you got a Pell Grant and your income falls under those guidelines, you may be eligible for $20,000 in forgiveness. If you’re a student right now and your parents still claim you as a dependent, your forgiveness is based on their income.
For about 8 million people, the forgiveness will be automatic because the Department of Education already has their info. For everyone else, the DOE is working on an application that can be filled out. Sign up for alerts from the DOE on the department’s website so you’ll know right away when that application opens.
To that end, be wary of any and all emails you receive about student loans. Check to be…
