With the approval of the student loan forgiveness plan, over 8 million borrowers qualify for debt relief. However, the details on how to qualify or apply for relief may be difficult to keep track of, making many parties vulnerable to scams disguised as “assistance.”
You do not need to do anything or pay anyone upfront to apply for the new federal student loan forgiveness plan. If you are approached by mail, email, phone, or other correspondence, and asked for money – it is fraud; you may lose money, compromise your personal information, have your identity stolen, or all three.
Scammers are also aware that people with student loan debt are eager to apply for the relief plan. If you are approached by anyone claiming they can sign you up early for the forgiveness plan, help you skip the line, or guarantee eligibility, you may be in contact with a scammer.
Pertinent information regarding eligibility and application are available both on the Federal Student Aid website and in our blog post. Further details regarding the application will be released by the FSA in October; all correspondence regarding your student loans will be delivered specifically by this email address: noreply@studentaid.gov.
If you suspect you may have been susceptible to fraud, report the information to ReportFraud.ftc.gov. In the meantime, you can monitor updates from your federal loan provider, as well as updates from the Department of Education.
Here are some common claims scammers promise:
- “Buy now or miss this opportunity.” Do not give in to pressure tactics. Remember, the “opportunity” is a chance to pay for information you could find yourself for free. Student loan forgiveness does not operate on a “first come, first serve” basis
- “We guarantee you’ll qualify.” If you have received a text message or email from the official Federal Student Aid, your qualification has been confirmed. If not, you can apply online through FSA in October.
- “I can get you first access. Give me your credit card or bank account number.” Never give out a credit card or bank account number unless you know the organization you are giving it to is legitimate. You could be putting yourself at risk of identity theft.
How to spot a student loan forgiveness scam:
- Make promises of immediate or fast debt forgiveness or cancellation;
- Request upfront fees to apply for student loan forgiveness programs through the Department of Education;
- Claim the program is affiliated with the government or Department of Education, but is not part of a government agency nor an official loan servicer listed on StudentLoans.gov; and/or
- Request your FSA ID.
Under the current plan, student loan debt is forgiven based on financial eligibility. Federal loan forgiveness plans and income-based repayment plans are available, but take many years and are available through the Department of Education. You do not need to hire someone to take advantage of these programs. You apply for them yourself for free through the Department of Education.
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If you or someone you know has identity theft issues, you can apply for free legal assistance by visiting www.lonestarlegal.org or calling 1-800-733-8394.
Lone Star Legal Aid (LSLA) is a 501(c)(3) nonprofit law firm focused on advocacy for low-income and underserved populations by providing free legal education, advice, and representation. LSLA serves millions of people at 125% of federal poverty guidelines, who live in 72 counties in the eastern and Gulf Coast regions of Texas, and 4 counties in Southwest Arkansas. LSLA focuses its resources on maintaining, enhancing, and protecting income and economic stability; preserving housing; improving outcomes for children; establishing and sustaining family safety, stability, health, and wellbeing; and assisting populations with special vulnerabilities, like those with disabilities, the aging, survivors of crime and disasters, the unemployed and underemployed, the unhoused, those with limited English language skills, and the LGBTQIA+ community. To learn more about Lone Star Legal Aid, visit our website at www.LoneStarLegal.org.
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