US Department of Education warns those with student loans to watch out for debt forgiveness scams

US Department of Education Warns Those With Student Loans to Be Watchful of Debt Forgiveness Scams | EdSource

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As President Joe Biden moves forward with his student loan forgiveness program, the U.S. Department of Education issued a public service announcement on Thursday warning borrowers to be aware of scammers “with promises to help you get your student loan forgiven, reduce your student loan debt, consolidate your student loans, or eliminate your student loans altogether.

The announcement comes despite a federal appeals court’s decision to cancel a loan last week in response to an emergency motion by lawyers for several Republican governors hoping to derail the program. Loan forgiveness applications remain open even with the suspension in place.

The department’s Office of Inspector General made the announcement, which states that “rogue companies, fraudsters and cybercriminals are targeting student borrowers. They send unsolicited text messages, emails, or calls with promises to help you get student loan forgiveness, reduce student loan debt, consolidate student loans, or eliminate student loans altogether. You may also see their advertisements popping up on social media. Don’t fall for it, they are probably scammers looking for your money, your personal information or both.

The department tells borrowers to get information about the plan only from the US Department of Education’s federal student aid office.

Any encounters with scammers should be immediately reported to the OIG Fraud Plan, department officials said in the public service announcement.

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