US President Joe Biden announces student loan relief with Education Secretary Miguel Cardona (Photo … [+]
Student debt relief means millions of borrowers will be $10,000 or $20,000 better off. Unfortunately, it also means millions of targets for student loan scammers.
Student loan scams are nothing new but have increased in scale with the Biden administration’s decision to provide student loan debt relief. Last week, to help borrowers avoid falling victim to scammers, the administration released a fact sheet detailing its actions to crack down on scams.
The administration also released an extensive list of student loan debt relief do’s and don’ts designed to help borrowers safely navigate the next couple of weeks until the loan forgiveness application is released.
The Biden administration announced in late August that it would forgive up to $20,000 in student loans for students who received Pell Grants while in college (Pell grants are federal financial aid generally awarded to low-income students) if they meet income criteria. Other eligible borrowers will see $10,000 in forgiveness. Borrowers who earn less than $125,000 ($250,000 for couples) based on their 2020 or 2021 Adjusted Gross Income will be eligible for the plan.
How Is the Biden Administration Trying To Prevent Student Loan Scams?
The administration is launching a comprehensive campaign to provide student loan borrowers with…
