Vultures Ahead

Beware of scammers offering access to the student loan forgiveness program

Scammers have taken notice of President Biden’s student loan forgiveness program. The thieves have been preparing for this moment ever since Biden announced the potential plan back in 2020. Now, as the loan forgiveness program is finally near, you should be wary of the fraudulent approaches associated with it.

Thankfully, student loan scams are nothing new to the FTC. The agency has been combating student loan relief programs that have conned people out of money for years. As The New York Times reports, as recently as June the FTC took legal action against a company that scammed consumers out of thousands of dollars. The company used confusing language and withdrew money from consumers’ accounts without their permission.

The new wave of student loan forgiveness scams typically offer you early access to the program. A caller will claim that if you pay them, you’ll get into the program before others. The caller will also likely say that you better hurry, because this amazing offer won’t be available much longer. As the FTC notes, anyone claiming that they can get you into the program early or guarantee acceptance is a scammer. The program is still under review and when it is implemented, it will be widely announced. You can make sure you’ll get the latest info on the program by updating your contact info with your loan servicer.

If you are targeted by one of these student loan scams, do not reply in any way. Instead, report it to the FTC. The more info the FTC has on these cons the easier they can shut them down.

Chris O'Shea

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