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Getting a personal phone call from the Commander in Chief’s office would be impressive, and even better if it’s about forgiving your student loans. Unfortunately, President Joe Biden is not calling you or anyone else to forgive student loans over the phone. It’s a scam.
Scammers are taking advantage of confusion around student loan forgiveness
There’s been a lot of confusion around when student loans are going to be forgiven, who qualifies, and how to apply for forgiveness, so it’s probably not surprising that scammers hope to take advantage. For one person, Debby Carter, an artist who lives in St. Petersburg, FL with $60,000 in Federal loans, the surprise came within minutes of Biden’s announcement, according to the New York Times. Carter received a call from the “Florida student loan center” claiming that they have records of her eligibility for student forgiveness, and asking her to give them a call back.
How to recognize student loan forgiveness scam calls
Scammers usually come with a sense of urgency, claiming that your eligibility is expiring or that you need to pay a fee upfront quickly to qualify for the debt forgiveness.
“You might be contacted by a company saying they will help you get loan discharge, forgiveness, cancellation, or debt relief for a fee,” warns a weekly email from the Department of Education. “You never have to pay for help with your federal student aid.”
Other red flags include asking to redirect your loan payments, or asking for personal information like your social security number, Federal Student Aid identification number, or any financial information over phone, text, or email.
What to do if you get a call about your student loans
A good rule of thumb when dealing with a potential scammer is to check if the name of their company comes up in the Better Business Bureau Scam Tracker. If it’s an illegitimate organization, you’ll find complaints and negative comments from its victims. But new scams aren’t reported as fast, so be aware that just because the name does not come up, it doesn’t make them safe. If you’re counting on student loan forgiveness, you should also consider signing up for weekly emails from the U.S. Department of Education for the most up-to-date information on forgiveness and potential scams. You can (and should) also report scam calls, texts, and emails to the BBB’s Scam Tracker or to the Federal Trade Commission’s website.
