Student loan debt scams, warning for borrowers
The BBB is warning about people trying to charge you to get the debt relief, and it’s best to err on the side of caution.
MADISON, Wis. – The Wisconsin Better Business Bureau is warning student loan borrowers to be alert and avoid becoming a victim of scammers.
As the result of President Joe Biden’s Aug. 24 “student loan forgiveness” announcement, the pause on federal student loan repayment was extended through Dec. 31. Several changes were made to Department of Education policy, including debt forgiveness, income-driven repayment plans and the Public Service Loan Forgiveness program.
The BBB is warning about people trying to charge you to get the debt relief, and it’s best to err on the side of caution.
“Loans are loans, and they are horrible,” said Teresa Klopp, UW-Milwaukee graduate student.
At UWM, there’s been a buzz on campus after Biden’s announcement that borrowers will receive forgiveness on $10,000 in outstanding federal student loans. In addition, students who come from low-income families which allows them to qualify to receive a Pell Grant will have their debt reduced by $20,000. To be eligible for debt forgiveness, borrowers must earn less than $125,000 a year for an individual or $250,000 per year for a married couple.
“Anything counts,” said Klopp.
“It’s really great, a big lift off my shoulders,” said Easton Dobson, UWM senior.
The BBB says many are eager to secure the best possible deal on their…
