Although the student loan forgiveness program is on hold, scam calls, texts, and emails are being sent to applicants to convince them they will miss a deadline. Loanquo is aware of this and decided to warn students who might fall victim to these scams.
Debt Relief Scams Continue As Student Loan Forgiveness Halts
Student loan forgiveness keeps getting scammed as it hangs in the balance. The program is on hold until at least February 28, when the Supreme Court takes on the two lawsuits blocking Biden’s student debt relief. With the Department of Education, the application process for the program is closed because of pending cases.
Although the program is on hold, scam calls are being sent, along with texts and emails, trying to convince applicants that they’ll miss the deadline if they don’t apply now. As one scam voicemail Loanquo received said, “Everyone is now going to get $10,000 dismissed upon income verification. If you don’t verify your income, you’ll start paying back on January 1.”
On studentaid.gov, it says they’re not taking applications. If you’ve already applied, it tells you your application is on hold. “Borrowers should watch out for imposters posing as the Department of Education. If they ever ask you for upfront fees, they’re a crook because it’s illegal to do that. If they’re pressing you, they’re probably a criminal. Don’t give away your FSA, ID, or password because they can use it to get into your account,” recommends Loanquo.
Loanquo’s Scam Protection Tips
You might be able to protect yourself by following these tips provided by Loanquo:
- Getting help with your debts is free of charge, and you can find out who is servicing your loans on your Federal Student Aid account, which can be found on your federal student aid account. You will never have to pay upfront fees to receive assistance.
- In addition, you shouldn’t trust anyone who pressures you into making a quick decision or promises instant debt relief. No company can help you speed up the federal government’s student loan relief process, and legitimate companies will not use aggressive tactics to pressure you into making a decision.
- Please do not give personal or financial information to anyone who claims to represent the Department of Education or your loan servicer unless they are 100% sure. Contact the DOE or your loan servicer directly if you have any questions. If you have any concerns, please do not hesitate to contact them.