As millions of Americans saddled with student debt await further word from the Biden administration on how exactly its debt cancellation program will work, federal and state law enforcement officials are worried about scams.
Attorney General Maura Healey’s office said the Student Loan Assistance Hotline has gotten calls from borrowers asking whether a call or email about their debt was legit.
“We are currently working in collaboration with the U.S. Department of Education and Consumer Financial Protection Bureau to help identify and stop scammers,” said a spokesperson for Healey’s office in an email.
In August,President Biden announced the federal government would cancel up to $20,000 of certain kinds of student loan debt. Since then, his administration has said little about how people can apply for relief beyond saying it will unveil an official application in October.
Concerned that bad actors would exploit a lack of clarity, the Massachusetts attorney general’s office quickly warned residents — more than 800,000 of whom may seek debt relief — against falling for fraud.
“With details pending, scammers are sure to begin exploiting consumers that are eager to rid themselves of student loan debt,” read a post on the state AG’s consumer affairs blog, published a week after Biden’s initial announcement.
Meanwhile, local consumer protection groups, like the Massachusetts Office of Consumer Affairs and Business Regulation, offered these tips for how to avoid getting…
