THE STORY BEHIND THE STORY: Student Loan Forgiveness Scams
Saturday, August 27, 2022
Dorothy Philbin | CNBNews Columnist
It is only 36 hours since President Biden announced the Student Loan Forgiveness program and we're not even sure it is legal yet. I suspect it will be long after the promised December 31, 2022, date before anything will happen as many states, banks, and people who paid off their loans will probably file suits in federal court. This program is only popular with current and recently-graduated students.People who paid off their loans don't think it is fair that the newer students get a pass. There are tons of parents who saved for years to put their kids through college. They don't like the free pass either. Then, how about all the farmers, truck drivers, plumbers, etc. who never went to college. Should they have to pay for someone else's bill? Again, I suspect a lot of lawsuits.Already, just 36 hours after the announcement was made, scammers came out of the woodwork. Would you know if you are being scammed? Here is what to look for.Someone offers to intercede between you and the government for a small fee, of course. The federal government and most banks will not deal with anyone other than the person who owns the loan.Someone who claims he can speed up the process or move you to the front of the line, for a small fee, of course.Someone who asks for your lender's name, address, the loan number or any other personal information. From the lender's name and loan number, a good hacker can find his way into your social security number and from there, your credit belongs to the scammer.In short, if and when the loan forgiveness is blessed by the courts and becomes official, the government will most likely find you. If not, just google the forgiveness program. Definitely, do not do anything before the New Year.