ATLANTA — Millions of Americans are waiting to apply for student loan forgiveness. The U.S. Department of Education said the application is expected to release in early October, but many people are taking advantage of borrowers through scams.
Simone Williams with the Better Business Bureau told 11Alive scammers have already begun using multiple tactics to extort money from borrowers.
"People are already being contacted by scammers and organizations saying, 'hey, we can get you your loan forgiveness right now.' And obviously, that's not true. The application hasn't even arrived yet."
In addition to robocalls, people have reported false texts, mail and pop-up websites. She said the websites are the latest tools and they're the ones borrowers should b especially wary of.
"Just slow down, make sure that you're going to the correct website," Williams said.
The Biden administration released some information to avoid fraud.
Tips on avoiding student loan debt forgiveness plan scams
- Do not give any personal information out or pay anyone money to apply for you.
- If you are contacted about your student loans, be wary. Ask yourself if this looks legit.
- Any student loan debt relief information should come from the U.S. Department of Education and the federal government student aid website.
- Double-check that you are getting the right emails before clicking on any links.
- Emails will only come from: noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com.
- You can sign up for the newsletter here. It will let you know when the application will be made available.
- Report scams and scam attempts to the Federal Trade Commission by calling 1-877-382-4357 or you can visit reportfraud.ftc.gov.
The Biden administration will also release more guidance on what to do if you have fallen victim to a scam regarding your student debt relief in the next coming weeks.
What you need to know about the forgiveness plan
Two months ago, President Joe Biden announced the student loan debt forgiveness program.
The plan will forgive at least 40 million borrowers who owe student loans. The plan is set to target low and middle income borrowers and fill a racial gap by giving Americans a break on debt.
Those eligible can get their loan forgiven for up to $10,000 for non-Pell grant recipients and $20,000 for Pell grant recipients.
How to check eligibility
- The Department of Education must hold the loans.
- Annual income must be below $125,000 for individuals and below $250,000 for couples in 2021 or 2020.
- Graduate students will also qualify for forgiveness
- Parent Plus loans are also forgiven but must follow the same income rules.
Other things for borrowers to know
- Payment pauses have been extended one last time until Dec. 31.
- Interest rates will remain at 0% until repayments begin.
- Loan balances will be forgiven after 10 years of payments and more.
- You can sign up for updates on the student loan forgiveness program on the Department of Education website
Find out more about the student loan debt forgiveness program here.