SAN ANTONIO — The plan for student loan forgiveness is still being developed. That is giving schemers the opportunity to try to get your money and steal your identity.
Expect to hear from a schemer trying to convince you they can help with your student loan forgiveness.
“The reality is that one in seven Americans today have a student loan according to the January 2020 Census,” said Zulfikar Ramzan, with cybersecurity company Aura. “They (scammers) know if they call enough people, a good number are going to believe that they actually are eligible.”
Student loan forgiveness should not cost you. Only schemers will charge you. Be aware of anyone who contacts you by phone, text, email, or social media, even if it looks like it is the federal government reaching out.
“You get solicited, it’s almost guaranteed to be a red flag in this day and age,” Ramzan said. “If anything, you should be the one soliciting and looking for the appropriate channels.”
It is not just money you can lose. Giving your personal information to the wrong person can also cost you if your identity is stolen. Schemers can open up credit cards and take out loans in your name. That is money you could be responsible for repaying.
“What the scammers will do is, they’ll actually send out a fake application and, of course, it asks for some very sensitive personal information, name, date of birth, Social Security number, school of attendance, maybe bank information,” said Michael Skiba, a fraud expert known as Dr. Fraud.
Double-check any websites claiming to be for student loan forgiveness. Schemers set up fake websites to make you think they are a legitimate company. Skiba recommends doing an internet search for the company along with the word “scam.”
Also, anyone who promises you "guaranteed eligibility" or "early access" for a price is a schemer. Do not pay.
“For a small fee, they can help you get ahead of the game,” Ramzan said. “Unfortunately, the game is not the one you think. It’s a game of confidence in being able to trick you into parting with your money.”
Instead, reach out directly to your loan provider about the steps to take to clear your debt. You can also sign up for updates from the Department of Education so you are notified when details of the plan become available.
Maximize the amount of debt forgiven with a separate program you may qualify for, the Public Service Loan Forgiveness program. It is for people who work in public service jobs such as government, the military, or nonprofits. You will get federal student loan forgiveness after you make 120 qualifying payments, if you are eligible for the program.
Plus, a limited waiver until October 31, 2022 offers borrowers credit for past periods of repayment that did not previously qualify.
Check out the Public Service Loan Forgiveness program Help Tool to find out more.
Here is some more information to know so schemers cannot take advantage:
- To qualify for loan forgiveness, your loans must have begun before July 1, 2020. That means some current and future students are not included.
- Good news for Texans, you will not owe taxes on the amount of debt forgiven.
- Also, the pause on paying student loans ends at the end of the year. Be prepared to start payments again in January.