Our readers have no doubt been following the recent press coverage on President Biden’s student loan debt forgiveness program. The announcement means that millions of Americans could see as much as $20,000 of their student loan debt simply wiped away. It’s great news in the midst of difficult times, and many students and former students will rightly feel relieved. The problem is that scammers are having a field day with yet another line of attack.
Student Loan Scams
The Federal Trade Commission (FTC) and other agencies are hard at work combatting student loan scams and debunking general disinformation on the topic. The following are the three most common scam attempts you might encounter:
- Paying a fee to have complicated forms filled out for you.
- Paying a fee to have loans cancelled or reduced.
- Advertisements for fake debt relief or forgiveness programs.
A major red flag is that these services will demand payment. The fact is that the U.S. Department of Education and official loan services will, AT NO COST, help you to:
- Lower monthly loan payments
- Alter repayment plans
- Consolidate multiple loans
- Take repayment breaks during education or unemployment
- Check if you qualify for loan forgiveness
Protecting Against Student Loan Scams
1. Up-front fees are a red flag
It’s illegal for student debt relief companies to charge you before providing a service.
2. Quick loan forgiveness is a scam
Anyone who isn’t the Department of Education and…
