Beware of Student Loan Forgiveness Scams

In case you have been living on Mars to avoid your student loan debt, the Biden administration announced that it would be forgiving up to $20,000 in undergraduate student loans. However, this executive order is so new that they have yet a way to process this student loan forgiveness program. The barbarians are at the gate and they are waiting to scam those suffering from federal student loan debt. The following are some ways that you can protect yourself from falling for scams.

Never Pay Any Up-Front Fees

Yes, it's illegal for student debt relief companies to charge you before administering a service, so says the Federal Trade Commission says.

Never Sign Up For Fast / Quick Loan Forgiveness Programs

If someone says they guarantee your eligibility for student loan forgiveness or says they can fast track your student loan debt forgiveness quicker than the scheduled timeline the Department of Education has laid out is a scammer.

Never Trust a Department of Education Logo

Scammers may use logos, websites, names and fake seals to convince you that they are legitimate. If you have doubts or questions about your federal loans, visit the Department of Education's official financial website.

Never Rush Into a Student Loan Forgiveness Program

Scammers will often use the urgency is now and time-sensitive opportunities to get rid of your student loan debt. For example, missing a deadline to qualify for a loan repayment plan, additional loan forgiveness programs or federal loan consolidation plans. This is designed to make you make a decision on the spot , send your money and get scammed.

If you find yourself struggling with student loan debts and looking for a real student loan debt-relief solution, live chat with us at the law offices of John T. Orcutt for a free consultation on getting out of debt for good or get started below.