Scammers leverage student loan forgiveness, FTC says. Here's how to protect yourself

Scammers leverage student loan forgiveness, FTC says. Here’s how to protect yourself

President Biden this week introduced a long-awaited plan to forgive student debt for thousands and thousands of debtors — and criminals will possible leverage the information to steal from unsuspecting victims, the Federal Commerce Fee warned on Friday.

“Nobody can get you in early, help you jump the line or guarantee eligibility,” stated a consumer alert issued by the company. “And anybody who says they can — or tries to charge you — is (1) a liar, and (2) a scammer.”

Most federal student loan debtors can be eligible for some forgiveness: Up to $20,000 for Pell Grant recipients, who have a tendency to have decrease family incomes, and up to $10,000 for individuals who did not get a Pell Grant.

There are some eligibility necessities. For instance, debtors’ debt should be held by the U.S. Division of Schooling. Their annual earnings — in accordance to a measure known as adjusted gross earnings — should even be under $125,000 or $250,000 for single and married debtors, respectively.

Different suggestions for debtors

Listed here are different FTC tips for student loan debtors to guarantee they do not fall sufferer to scams:

  • Sign up for updates from the Schooling Division to be notified when the debt forgiveness course of has formally opened.
  • Know who your federal student loan servicer is. Be certain that it has your most up-to-date contact info. That can assist you get the newest updates on the cancellation, in addition to the pause on loan funds by means of the top of 2022.
  • By no means pay an up-front price to somebody providing debt aid. It is unlawful for firms to cost earlier than they assist you. It’s possible you’ll not get any assist or your a reimbursement.
  • Do not be rushed. Criminals push shoppers to act quick, saying they could miss qualifying for loan forgiveness and different applications if they do not enroll immediately.
  • Some scammers declare to want your Federal Student Assist Identification to assist. Do not share this; scammers could use it to break into your account and steal your identification.
  • Should you spot a rip-off, report it to the FTC at

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