An overwhelming amount of Americans have student loan debt. According to Forbes Advisor, student loan debt hit an incredible $1.75 trillion in 2022. With numbers like that, it’s no surprise that many borrowers are searching for student loan programs to help relieve the burden of debt.
Student loan scams are nothing new, but they have experienced a dramatic uptick in recent years — which some experts credit to the wave of moratoriums placed on student loan repayments. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which passed in March 2020, provided some relief for federal student loan borrowers by providing a 0% interest rate along with a pause on payments and collections. Since then, the pause has been extended many times, which may confuse some borrowers, leaving them even more susceptible to scammers.
Navigating your student loan payments and forgiveness options during a global pandemic can be challenging, but it’s important that you stay alert to entities trying to take advantage of the situation. Beware of anyone who claims that they can get your loans erased as part of the “CARES Act loan forgiveness,” “Biden loan forgiveness,” or a “pandemic grant.” These are common scam program names being circulated.
Learn more about student loan forgiveness scams and how you can avoid falling victim to one. Included in this guide are the most common red flag tactics used by scammers to swindle you out of your money or obtain your personal information, tips on how to stay safe, and helpful links to resources.