- Office of Consumer Affairs and Business Regulation
Last week the Biden Administration announced a sweeping federal student loan forgiveness program. The program cancels up to $20,000 of certain student loan debt. With details pending, scammers are sure to begin exploiting consumers that are eager to rid themselves of student loan debt.
The Office of Consumer Affairs and Business Regulation wants to help you spot a scam before it’s too late. The below tips can help you avoid fraud associated with the new student loan forgiveness program.
- Only rely on information by signing up for the Department of Education’s (DOE) federal student loan borrower email updates. The DOE will provide all updates directly from the government about the official opening of the student loan forgiveness program.
- Know that applying for student loan forgiveness is free, and nobody should ever try to charge you to apply for, accelerate, or receive relief. If someone demands payment, it’s a scam.
- Beware of unsolicited messages or illegitimate advertisements about accessing student loan forgiveness. Example language of suspect texts include:
- “Immediate action is required to qualify for student loan forgiveness before program discontinuation.”
- “Student loan forgiveness is on a first come, first serve basis—act now!”
As always, if you believe a scammer is reaching out to you, it is important to verify the identity of who is contacting you. Any steps taken to consolidate, forgive, or pay off student loans should be done with a verified federal loan servicer. Be sure to practice prudent account security and never share your Federal Student Aid (FSA) ID and password with anyone.
Report any suspected forgiveness scams to the Massachusetts Office of the Attorney General, the DOE at studentaid.gov, the Federal Trade Commission, and the Consumer Financial Protection Bureau. Additional steps should be taken to secure your Federal Student Aid ID. Log in and change your FSA ID here.
