OHIO — Student borrowers are getting a fair warning from the federal government on how to avoid loan forgiveness scams once the process is open.
What do you want to know
- Officials warn against responding to instant messages via social media over student loan forgiveness
- Calls that your debt can be consolidated or eliminated are red flags
- Report scammers
- December 31 is the start of the student loan forgiveness application process
- In January 2023, student loan repayments resume
The Biden administration has released a list of do’s and don’ts related to the process, as it is expected that scam artists are already looking to take advantage of borrowers trying to evade debt.
Not to do
- Don’t pay for loan forgiveness
- Do not reveal student aid IDs, passwords, account information, or personal information
- Do not refinance without knowing the risks
- Register for ed.gov notifications
- Create a Student Loan ID
- Update your information with your loan provider
- Report scammers
While there are plans for the federal government to leverage social media and get accurate information about the process, there are also plans to aggressively target scam prevention. Additionally, the goal is to work with states to share information about scams and educate borrowers so they don’t become the next victim.
In the meantime, the Better Business Bureau of Central Ohio said borrowers should be aware that receiving a call, text or email that says “Hey, you’re eligible for a student loan forgiveness program” or ” Hey, I see you’re carrying a lot of student loan debt. We can consolidate that for you, or we can get those loans forgiven for you,” is a red flag.
This is especially true for those who hack into social media accounts and pretend to be friends of the borrower by sending instant messages that say things like, “I was able to get loan forgiveness. I see your name is on the list too. You want to contact this person at this phone number. »
Whether it’s a phone number or a link, LeeAnne Lanigan, director of consumer relations and investigations at the BBB, said it shouldn’t be believed because once they have personal information, your bank account could be “debited monthly for money”. to go to them and not to your student loans.
“Generally banks are unable to help you because their position is that you have completed all the paperwork. You agreed to let this person withdraw the money from your account,” she added.
However, if by any chance you get scammed, you will need to contact the Federal Trade Commission and file an identity theft case. This, in addition to contacting your local Better Business Bureau and Department of Motor Vehicles if you have waived driver’s license information.