Nessel: Beware of student loan debt forgiveness scam
(CBS DETROIT) - Attorney General Dana Nessel is reminding Michiganders to be vigilant against scammers as they fill out their applications for student loan debt relief.
Nessel encourages residents to follow these tips to avoid these targeted scams:
- Do not provide your personal or financial information in response to unsolicited emails, phone calls, or texts either purportedly from the federal government or a company claiming to be able to assist you with obtaining the announced relief.
- Don't agree to pay anyone for assistance in obtaining this relief.
- Don't be rushed. To get you to act fast, scammers say you could miss qualifying for repayment plans, loan consolidation, or loan forgiveness programs if you don't sign up right away. Take your time and check it out.
- Don't give away your FSA ID. Some scammers claim they need your FSA ID to help you, but don't share your FSA ID with anyone. Dishonest people could use that information to get into your account and steal your identity.
Anyone who would like to report a potential scam can call the Attorney General's Consumer Protection team at 877-765-8388.
The Biden administration made the announcement of the application's availability. Here are the highlights of the announced student loan debt relief:
- The current student loan repayment pause has been extended a final time until December 31, 2022. Payments will resume January 2023.
- The U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households.
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