Science

Offering Help With Student Loan Forgiveness Is Probably a Scam

40 million Americans eager to shed Law enforcement officials have warned that their student loans are being targeted by scammers who are calling, texting and emailing people with fraudulent offers of help.

Criminals often leverage old scams to capitalize on current events, in this case using the Biden administration’s program to forgive as much as $20,000 in student loans per borrower.

“The FBI typically sees this behavior when a new government assistance program becomes available,” Jeffrey Downey, special agent in charge of the agency’s field office in El Paso, Texas, said in a statement cautioning the public this week.

According to the FBI, fraudsters claim they can guide people through the federal student loan forgiveness program, use the scheme to obtain money for services they won’t provide or other crimes. who attended the Vermont Attorney General’s office to collect personal information for. Sending alerts.

The fraudsters behind the calls may also claim to represent a bank or the US Department of Education. Then they usually ask for personal information to start the application process for loan forgiveness.

Scammers also masquerade as an email or text link to an official government website, which then requests personal information such as a person’s name, Social Security number and date of birth.

Important things to remember to avoid getting ripped off, say officials:

  • No payment of any kind is required to access any federal student aid programs or receive aid through the Department of Education or its affiliates.
  • Officials also cautioned against providing Federal Student Aid (FSA) ID login information, saying the request was a scam and used to cut off contact between the borrower and the servicer, as well as steal the person’s identity. Is.
  • Borrowers are being advised to know the risks before refinancing student loans, as private loans eligible for debt relief tend to lose out on the government’s offer, officials say.

Regulators are already full of scams related to getting help with student loans. Criminals have long used real, but difficult-to-navigate, government programs to trick people into paying illegal fees or handing over personal information. In August the Federal Trade Commission said it was sending more than $822,000 in refunds to borrowers tricked by an illegal debt-relief scheme.

People can apply for one-time debt relief till December 31, 2023, however for now a Court order is currently blocked Biden administration from loan forgiveness.

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