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Several police agencies around the country are urging people to be on the lookout for “red flags” that may indicate a would-be scammer.
Among them are promises to get student borrowers even more money, or claims they can get a borrower their money faster, police said.
The Federal Trade Commission (FTC) put out a statement telling student loan borrowers they don’t need to do anything or pay anybody to sign up for the new program.
“Nobody can get you in early, help you jump the line, or guarantee eligibility,” the agency said. “And anybody who says they can — or tries to charge you — is (1) a liar, and (2) a scammer.”
Biden's relief plan will provide up to $20,000 in debt cancellations to those who received Pell Grants with loans held by the Department of Education, and $10,000 in cancellation for non-Pell Grant recipients.
The FTC said the Department of Education is working out the details of the new plan and would notify borrowers when the process has officially opened.
In the meantime, police have outlined several tips borrowers can take to avoid falling victim to scammers. They include:
- Don’t agree to pay anyone for assistance in obtaining this relief.
- Don’t provide 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.
- Beware of student loan debt relief companies that ask for fees up front or claim they’ll eliminate all of your debt immediately.
- 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 it with anyone.
- Review your financial aid offers and keep track of the amounts you applied for and received.
- Keep receipts and documents with personal information in a safe place, and shred them when you are finished with them.
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