Scammers are 'on the move' now that the student loan forgiveness application is live, warns FTC. Watch out for 5 red flags
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The Biden administration officially launched the application for federal student loan forgiveness on Monday — and scammers are already «on the move» to capture borrowers' money and personal information, the Federal Trade Commission warned Tuesday.
Tens of millions of Americans are eligible for debt cancellation. Borrowers may qualify for cancellation of up to $10,000 of federal debt, a sum that doubles to $20,000 for Pell Grant recipients, who are from lower-income households.
More than 8 million people applied for relief over the weekend during a short beta test period that began Friday, President Joe Biden said Monday.
But criminals are targeting borrowers both before and after they apply, the FTC said.
«As people file their applications, [the Education Department] will review them on a rolling basis,» the FTC said in a consumer alert. «Pack some patience and follow the process … not those who say they can put you in front of the line. Because those are scammers.»
Borrowers can apply for forgiveness no later than Dec. 31, 2023.
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Here's are five red flagsborrowers applying for debt relief ought to watch out for, according to the FTC.
Don't give your information to a third party offering to apply on your behalf. Apply directly at StudentAid.gov/DebtRelief.
Right now, the application is online only. There will be a paper application available at a later date.
Anyone who says you need to pay to apply is a fraudster, the FTC said:«And anyone who guarantees approval or quicker forgiveness:
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