Student loan forgiveness scammers are already at work, experts say. How to spot them
After the Biden administration announced a plan to cancel some federal student loans, some are already seeing scams about debt relief, experts say.
The Better Business Bureau has received reports of such scams on its Scam Tracker, with one person reporting that their daughter had received a voicemail from “the Biden student loan forgiveness program.”
When returning the call, the daughter spoke with a “Peter” who asked for her email address and phone number.
“He asked if she wanted to see if she qualified for the loan, but when we started asking him questions… he got frustrated and ended the call,” according to BBB.
Some scammers have called saying individuals need to “pay an upfront fee or or even redirect your current student loan payments to them,” BBB said.
One person even reported getting a bogus final notice letter that included their debt total, according to BBB. The individual then called and ended up making direct payments to the scammer.
“Currently, most of the student loan forgiveness scams reported to BBB Scam Tracker are government impostors,” the bureau warned.
Tips to avoid student loan scams
To avoid student loan forgiveness scams, when in doubt, contact the government agency directly, the bureau advised.
BBB also noted to “never pay fees for a free government program.”
“Government agencies will never ask you to pay a fee to benefit from a free government program. Don’t let scammers persuade you otherwise,” BBB said.
Individuals should watch out for “unsolicited calls, emails, or text messages,” BBB said. Typically, government agencies will only reach out at your request.
“Out-of-the-blue communications are a red flag,” the bureau said.
BBB also said to be mindful of scare tactics.
“If someone claims you’ll miss out if you don’t act immediately, be wary,” BBB warned.
Lastly, even if information comes from close family or friends, be leery.
“During the COVID-19 pandemic, BBB received many reports of hacked social media accounts being used to spread government impostor scams,” the bureau said.
For information about the real student loan forgiveness plan, visit the website for the Department of Education or Federal Student Aid.
This story was originally published September 2, 2022 at 3:29 PM with the headline "Student loan forgiveness scammers are already at work, experts say. How to spot them."
