Harrisburg, PA – The Pennsylvania Department of Banking and Securities (DoBS) and Pennsylvania Department of Education (PDE) are warning consumers of a surge in student loan forgiveness scams.
The COVID-19 pandemic has caused financial struggles for many borrowers who are seeking relief. If a student or borrower receives an email, letter, or call about student loan debt forgiveness, they should pause before sending or confirming any personal information.
“With the continuing pandemic, many consumers have been in search of financial relief,” said Secretary of Banking and Securities Richard Vague. “Like other scams, these perpetrators prey upon the hope and vulnerability of people, creating an ideal scenario to take advantage of them.”
The recent pandemic-related pause in student loan payments, the public calls for broad-based student loan forgiveness, and various executive actions and benefits and concerning loan balances are causing an uptick in scams from individuals and companies who are taking advantage of the confusion surrounding the changing landscape.
“Many students and families across Pennsylvania borrow funds to help finance postsecondary education, resulting in debt that may take years to pay off,” said Secretary of Education Dr. Noe Ortega. “It’s important for borrowers who are seeking student loan debt relief to be aware of the associated scams and avoid them at all costs.”