JACKSONVILLE, Fla. – After President Biden announced his plan for student loan relief Wednesday, the Federal Trade Commission (FTC) is warning consumers about potential scams.
Student loan forgiveness includes canceling $10,000 in federal student loan debt for those making below $125,000 a year, or households earning less than $250,000. He is also canceling an additional $10,000 for students who received the Pell Grant and extending the loan repayment pause to Dec. 31, 2022.
The FTC is advising consumers to remain vigilant while waiting for the next steps concerning the debt relief program. Remember, you do not need to pay anyone or do anything extra to sign up for the new debt relief program or repayment extension ― only scammers will charge you in advance.
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If you receive a call from anyone claiming they can “get you in early, help you jump the line or guarantee eligibility,” ignore them because that is most likely a scammer calling to access your information, according to the FTC.
The Department of Education will provide further details on how to apply to receive student loan forgiveness. You can sign up for Department of Education updates to receive a notification when the process has officially opened.
The FTC recommends in the meantime you familiarize yourself with your federal loan servicer ― some loans were transferred to other servicers ― and verify they have your most recent contact information as well.
If you spot a scam, report it to ReportFraud.ftc.gov.