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What to Know about Student Loan Forgiveness Scams

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Be aware! Anyone who promises you early access to student loan forgiveness, tries to charge you money to jump the line, or guarantees eligibility, is a scammer.

Graduation cap and a rolled-up diploma rest on top of a stack of dollar bills

There is a lot of information surrounding the Student Debt Relief Plan – a three-part plan to help borrowers transition to regular payments as pandemic-related support expires, part of which involves up to $20,000 in loan forgiveness. In addition, the federal student loan payment pause has been extended until December 31, 2022, with payments resuming in January 2023.

While the details of the legislation are being worked through, many scammers are trying to take advantage of the situation. According to the Federal Trade Commission (FTC), do not believe anyone who claims they can get your loans forgiven earlier or guarantees you eligibility.

You can visit the U.S. Department of Education to sign up for email updates to receive a notification when the process is officially opened for debt forgiveness.

Update Contact Information with Loan Servicer
Be sure to check directly with your loan service provider regarding your loan. According to the U.S. Department of Education’s Federal Student Aid department, federal student loans are assigned to a loan servicer. This servicer works with you on repayments options and other information about your loan.

It’s important to keep your contact information updated with your loan servicer so you can receive updates about cancellation or pauses to your loan. To identify your loan servicer for loans from the U.S Department of Education:

Remember, do not pay anyone who promises you early or special access, or guarantees eligibility. To stay up to date on student loan forgiveness information, visit the U.S. Department of Education’s website for Student Loan Forgiveness.

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