Over the past few weeks, I’ve seen two Facebook posts from people claiming they can help student loan borrowers get automatic forgiveness. Here’s the catch: they charge a fee and call it a “business.” No one can guarantee to wipe out your student loan debt, and the Federal Trade Commission (FTC) Consumer Advice hub says it’s a scam.
According to the website, it’s illegal for anyone to charge fees before helping you or to pretend they’re affiliated with the Department of Education. We’re in a hard time right now. Groceries and gas are still high, rent prices are increasing, and since the SAVE plan ended, millions of student loan borrowers are forced to enroll in different repayment plans, some they cannot afford.
No matter which social media app I’m on, I see all kinds of posts from borrowers asking how to get their loans forgiven, or at least lower their monthly payments. Scammers use this opportunity to prey on stressed individuals looking for a quick solution.
What could happen if you give out your information?
- You’ll lose money.
Scammers pocket the fee and may ghost you after you send the payment.
- You risk having your personal information in the wrong hands.
Your personal data is linked to your student loans. Scammers could access your Social Security number or other important information like bank and credit card details.
Student loan forgiveness: Where to get all the information you need
According to the Federal Student Aid website, you actually can get your loans forgiven or discharged. If you’re a teacher or work for a nonprofit or the government, you can have the remaining balance (or part) of your Direct Loan forgiven after 120 qualifying monthly payments. In some cases, if your school closed, misled you, or you filed for bankruptcy, you may be able to have the loans discharged.
Other situations may also allow forgiveness, such as through an income-driven repayment plan (IDR). From what I’ve learned, these are handled case-by-case with no universal or automatic decision. You have to apply, and nothing is guaranteed.
Header image credit: Student Loan Money On A Graduation Cap by DNY59 from Getty Images Signature via Canva Pro
