How to avoid student loan forgiveness scammers

Published: Aug. 26, 2022 at 3:10 PM EDT
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(WABI) - This week President Joe Biden pledged to wipe away billions of dollars of college debt.

The Department of Education estimates that 27 million people will qualify to receive student loan debt relief.

But, what’s next for loan borrowers who qualify?

While the situation is still fluid right now and many questions still need to be answered, the folks from the Finance Authority of Maine say they’re keeping a close eye on things.

While we wait for more info from the federal government, FAME says you should be aware of scammers.

Those can come in the form of phone calls, texts, and emails. Scammers may try and use social media to get in touch with you.

”Make sure that you never get into a situation where you’re paying a fee for someone to tell you what you could find out for free, or following promises that sound too good to be true about other types of forgiveness. You want to make sure you always follow official guidance. We also want borrowers to really start thinking about the fact that their payments are going to restart January 1, 2023. We want the fact that they have this forgiveness to just be a really great opportunity to leverage accelerating their repayment back altogether,” said Martha Johnston, FAME director of education.

As far as the loan forgiveness, FAME says this will help Mainers with federal student loan debt who did not finish their credential or degree.

This forgiveness will also be available for parents who have Federal PLUS Loans.

For more information on the student debt relief plan, head to FAMEMaine.com.