Scam Alert Student Loan Forgiveness

Scammers are targeting people with student loan debt after Biden’s announced plan for student loan debt forgiveness. 

Last week, Biden announced plans for student loan debt forgiveness. Scammers are already looking to take advantage of the situation. The scam usually starts with a call or voicemail claiming to be a representative from the loan forgiveness program. To check your eligibility, you’ll need to fill out an online application that collects personal information such as your bank account details.  

In one instance reported to the Better Business Bureau, someone received a voicemail from “Peter” stating they were from the “Biden student loan forgiveness program.” They called back and “Peter” asked for their email address and phone number. He asked questions to “determine her eligibility” but once she started asking questions about the program, “Peter” became frustrated and ended the call. 

There are several variations of this scam. Some will require upfront payment to make sure they at least steal some of your funds. Others could be so brazen that they have you redirect your student loan payments to them instead. “I got a ‘final notice’ letter that has the debt amount listed… Thinking it was from the federal student loan department, I called,” one victim reported. “They had me change my password and got my bank account number [and] direct payments to them.”

Most of the scams reported in this category involve someone claiming to be from the federal government, but these scams are likely to evolve. 

The most important thing to remember is that enrolling in a government plan for student loan debt reduction is free. It is a scam if you are asked to pay a fee. If you have any doubts, contact the Department of Education directly. You can find more information at ED.gov and StudentAid.gov. Never click on links in unsolicited text messages and emails. This cannot be stressed enough.

Free government programs will never charge a fee. The fraudster may claim that the fee will get your application processed faster or unlock additional benefits, but it’s all a lie. Government agencies will not use scare tactics. If they pressure you into paying or enrolling immediately, or else you’ll miss out, be very skeptical. Instead of falling for these tactics, don’t respond until you can verify the information.