After President Joe Biden announced this week he'll cancel up to $20,000 in debt for millions of student loan borrowers, some recipients are anxiously awaiting the next steps.
As borrowers begin to navigate the program confusion erupts, scammers may see the perfect opportunity to strike, according to the Better Business Bureau.
Federal regulators, too, say scammers are keeping an eye on the rollout.
Borrowers should remember that nobody can get you in early, help you jump the line or guarantee eligibility, according to the Federal Trade Commission. Details won't be released immediately, so you might have to wait a while.
Borrowers are encouraged to sign up for Department of Education updates to be notified when the debt forgiveness process has officially opened.
While specifics are being ironed out, here are some tips about avoiding loan forgiveness scams to be aware of, according to the BBB. First, the organization says you should learn the terms of your student loan and the relief program before taking action. Only rely on official government websites, such as ED.gov and studentaid.gov, for information.
Also, keep an eye out for out-of-the blue calls, emails or texts claiming to be from the government. Typically, the government won't contact you using the above methods unless you've given permission, according to the BBB. If you think something seems suspicious, reach out to the agency directly. If concerned about an alleged government representative's legitimacy, hang up the phone or stop communicating with them, the non-profit said. Then, find the official contact information to see if who you were communicating with is legitimate.
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The BBB says scammers often trick victims into paying for free government programs or claim you can get additional benefits or faster benefits - if you pay a fee. Legitimate government agencies won't request an advanced processing fee.
Finally, be wary about any student loan relief information, even if it comes from a friend or close family member. The BBB explained during the COVID-19 pandemic, it received many reports of hacked social media accounts being used to spread imposter scams.
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