On August 24th, the Biden-Harris Administration announced the one-time federal student loan debt relief plan. While the forgiveness plan is designed to help many low and middle-income families, we are now seeing an increase in scams that have the potential to hurt them badly.
The Federal Trade Commission (FTC) suggests some ways to avoid being a victim of a student loan scam:
– Never pay an up-front fee. Companies that charge you before they help you are breaking the law. Don’t fall for the ads that promise to help you with student loan debt. If you have federal loans, go to the Department of Education at StudentAid.gov.
– Don’t sign up for quick loan forgiveness. Even though they might say they can wipe out your loans by disputing them, they can not.
– Don’t trust a Department of Education seal. Even though it might look like an official seal and logo, it likely isn’t.
– Don’t rush. Scammers will ask you to act fast so you don’t “miss” qualifying for repayment plans, loan consolidation or forgiveness programs.
– Don’t provide your FSA ID to anyone. This is your private information and can be used to steal your identity.
The FTC also stressed that there is nothing a company can do for you that cannot do yourself for free. Again, if you have federal loans, start with StudentAid.gov/repay. If your loans are private, contact your lender directly.
To learn more about the debt relief plan from the U.S. Department of Education, click HERE.
If you have any questions or concerns, please contact Member Services immediately. We are always available for you 24/7/365 at 888.966.GUARD (4827).
Photo courtesy credit: Muhammad Rizwan via unsplash.com.