RICHMOND, Va. (WRIC)- The Better Business Bureau is sounding the alarm about a recent increase in student loan forgiveness scams after President Joe Biden unveiled a plan to cancel debt for certain borrowers.
Less than a month ago, Biden pledged to cancel up to $10,000 in federal student loans and up to $20,000 for Pell Grant recipients. The relief is limited to individuals earning less than $125,000 per year and households earning under $250,000 per year.
Barry Moore, president and CEO of the Better Business Bureau serving Central Virginia, said imposters wasted no time trying to take advantage of Americans anxious for relief. He fears reports of these scams will grow moving forward.
“There is so much money involved. It’s so easy to do over the phone. People are so anxious and they’re in a hurry to get it,” Moore said. “This can grow very fast. By the Christmas holiday, it could be exploding if we are not cautious, if we do not get the word out.”
Moore said imposters claiming to represent the new federal debt cancellation program are reaching out by phone and by mail.
In an effort to steal your personal and banking information, the scammers ask you to fill out a form to see if you qualify for loan forgiveness.
Other times, scammers urge people to pay an upfront fee or redirect their current student loan payments. Borrowers never have to pay for…
