By A beta test of the student debt relief application website was launched recently by the US Department of Education. The site will be available on and off until the full launch later this month, with the application taking around five minutes to complete.
According to the department, there is no advantage in applying before the full launch. But confusion is likely for many navigating this new process.
Following the Biden administration’s recent announcement, millions of Americans will benefit from student debt relief; Unfortunately, this creates a great opportunity for scammers. Check out our recent warning on student loan forgiveness scams.
As student loan holders navigate the new forgiveness program, scammers will no doubt be there to take advantage of any confusion. This happens with any major government initiative, including the rollout of the COVID-19 vaccine, the eviction moratorium, and pandemic relief programs. Always be sure to do your research before sharing personal information.
Tips for Avoiding Student Loan Forgiveness Scams
• Find out about the conditions of your student loan and the assistance program before taking action. Always do your research before sharing personal information. Make sure you understand the ins and outs of your specific loan, as well as how student loan relief impacts you. You may need to research who your current loan manager is, as they may have changed. Go directly to official government websites, such as ED.gov and studentaid.gov, for more information.
• Never pay money for a free government program. Scammers often trick victims into paying for free government programs – or they claim that you can get extra benefits, faster benefits, etc., for a fee. A real government agency will not ask for advanced processing fees. These are all red flags of a scam.
• Beware of cold calls, emails or text messages claiming to be from the government. In general, the government will not contact you using these methods unless you give permission.
• Beware of bogus government agencies or programs. If you’re talking to someone claiming to be a government official offering you student loan relief, do some research before agreeing to anything. Scammers often create similar government websites that look like legitimate agencies or programs.
• Think something looks suspicious? Contact the agency directly. If you have any concerns about the legitimacy of a suspected government official, hang up the phone or stop emailing/texting. Then find official contact information (look at ED.gov and studentaid.gov or other official sites) and call to verify. Then, report suspicious calls or messages.
• Be careful, even if the information comes from a friend. Even if a close friend or family member you trust has sent you the information regarding student loan relief, first make sure the claims are real. During the COVID-19 pandemic, BBB has received numerous reports of hacked social media accounts being used to spread government impersonator scams.
Learn more at BBB.org about scams targeting recent college graduates and government impersonators. Get more information by reading BBB’s advice on loans and credit repair services.
If you’ve spotted a student loan forgiveness scam (whether or not you lost money), report it to BBB.org/ScamTracker. Your report can help others avoid being scammed.