The Supreme Court will ultimately decide the fate of President Joe Biden’s student debt forgiveness program, and according to consumer experts, student loan forgiveness frauds are currently on the rise.
The founder and editor-in-chief of The College Investor shared some student loan relief red flags:
- Beware of any caller who claims to have a relationship with the U.S. Dept. of Education. Third-party companies do not have such a relationship. Don’t believe any promises of immediate loan forgiveness or cancellation.
- Overall experts say you should hang up when you get a call out of the blue from anyone that calls you and says the president’s name, and says they can help you with the student loan forgiveness program. If forgiveness is granted by the Supreme Court, you would qualify through the U.S. Dept. of Education.
- Avoid any company that promises you a set payment or forgiveness. Companies cannot promise forgiveness or guarantee an income-based repayment because both will change based on your income.
- Beware of any promise that because your school closed or is being sued, you can get forgiveness.