HOUSTON, Texas (KTRK) — President Joe Biden recently announced his plan to forgive $20,000 in student loan debt, and a new report says that scammers will take advantage of the opportunity and swindle consumers.
The video above is from a previous report.
In August, the Better Business Bureau wrote that con artists would take advantage of any confusion, similar to government initiatives, such as pandemic relief programs.
RELATED: Who benefits from Biden’s student loan forgiveness plan, how much debt could be canceled
The BBB has already reported almost 300,000 scams related to student loan forgiveness, according to the BBB scam tracker.
HOW THE SCAM WORKS
Leah Napoliello of the Better Business Bureau of Greater Houston and South Texas said scammers, sometimes armed with detailed information about people and their loans, have already gotten money out of student borrowers.
They’ll want an advance or processing fee and tell you to send that to another person. The victim thinks it is a legit government agency contacting them, and they are supposed to pay. So, they give that money and find out later it was a scam.
A consumer might receive a call from someone claiming to represent a student loan forgiveness program. To see if you qualify, they will ask you to fill out an application online that will consist of filling out your bank information.
One consumer reported their experience. “My daughter received a voicemail from ‘the Biden Student Loan Forgiveness Program.’ She returned the…
