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Scammers exploit loan forgiveness application


Image Source: ourweekly

Written By: Abdullah Al-Ejel


In a time of increased cyber security and fraudulent attempt awareness, we would hope to witness a reduction in scams. Unfortunately, this continues to be prevalent and grows at an increasing rate, with reports increasing over 17% from 2020 to 2021. One of these attacks has been made on the recent loan forgiveness program by Biden.


Beginning October 17th, the US Department of Education officially released the new loan forgiveness application, and scammers have taken this opportunity for their scheming. With millions of individuals eligible to apply, the number of potential victims grows, broadening scammers' targets. Here are the major tip-offs to notice scams related to this application:


  1. You’re not applying at StudentAid.gov/DebtRelief or any .gov website

  2. The application is free. If there is a fee, do not fill it out and report it right away

  3. Providing financial documents is not required as of now. Do not fill out an application that asks for proof of income or account information

  4. Emails coming from suspicious accounts or non-government domains

  5. Applications that claim to approve you for a fee. You can apply and get accepted or denied based on qualifications. It’s a fair process for everyone


It’s disheartening that scamming exists, especially during these types of situations intended to support those in need. All we can do for now is share awareness as much as possible. If you are applying to this program, remember to only use government resources and avoid the 5 that I have mentioned above. Only time will tell if this forgiveness plan ends up a success, and all who are eligible receive their money.


Sources:

https://www.cnbc.com/2022/10/18/ftc-red-flags-to-spot-student-loan-forgiveness-application-scams.html


https://www.axios.com/2022/10/20/student-loan-forgiveness-application-scams


https://www.fbi.gov/contact-us/field-offices/sanfrancisco/news/press-releases/fbi-san-francisco-warns-the-public-about-potential-federal-student-loan-forgiveness-fraud-schemes

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