March 29, 2024

In recent months, you may have received a call or voicemail telling you that you qualify for student loan forgiveness. As the conversation around student loan forgiveness continues, bolstered by actions from the Biden administration in revising programs like Public Service Loan Forgiveness and borrower defense to repayment, many new scams have appeared targeting student loan borrowers. Understanding how these scammers work and who they’re targeting can help you know what to look for and how to protect yourself.

How to spot a student loan forgiveness scam

Student loan forgiveness scams rely on one thing: desperation. These scams come in many forms, but some of the more common ones include promising immediate loan forgiveness and offering to help you apply for forgiveness for a small fee.

However, most federal student loan forgiveness programs require years of qualifying payments and/or employment in certain fields before you’re eligible, and you can apply for free through your loan servicer.

Additionally, you may qualify to have your student loans canceled if you’re permanently disabled, your school has been closed or you’re experiencing other qualifying circumstances. But again, you can work with your loan servicer for free to find out if you’re eligible.

Here are some ways to know if an offer for student loan forgiveness is a scam:

  • The company promises to help you enroll in a certain assistance program and charges a fee for the service.
  • You’re asked to pay…

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