MIAMI VALLEY — As discussions continue around the Biden administration’s student loan forgiveness plan, organizations are warning of the potential for scams aimed at misleading those who might be eligible.
President Joe Biden on Wednesday unveiled a plan to forgive up to $20,000 in student loan debt for some Americans. Additionally, it extended the pause on federal loan repayments through Dec. 31, 2022.
On Friday, the Federal Trade Commission warned of scammers who may seek to take advantage of those seeking more information about the pardon plan.
>> Biden announces plan to forgive student loan debt and extend repayment pause
The FTC noted that you don’t have to do or pay anything or anyone to enroll in the program.
“No one can get you in early, help you skip the line, or guarantee your eligibility. And anyone who says they can — or tries to accuse you — is (1) a liar and (2) a scammer,” FTC officials said.
Additionally, the Better Business Bureau offered tips for avoiding student loan forgiveness scams:
- Find out about the terms of your student loans and the relief program before you act
- Never pay money for a free government program
- Beware of cold calls, emails or text messages claiming to be from the government
- Beware of Fake Government Agencies or Programs
- Think something looks suspicious? Contact the agency directly
- Be careful, even if the information comes from a friend
>> Student loan forgiveness: what you need to know about the plan
The FTC also suggested checking with your federal loan officer and making sure you have their most up-to-date contact information.
If you think you’ve discovered a scam, report it at ReportFraud.ftc.gov or BBB.org/ScamTracker.
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