Dana Nessel for Attorney General: AG Nessel Reminds Michiganders to Beware of Scammers Taking Advantage of Federal Student Loan Debt Forgiveness Program

LANSING –  Michigan Attorney General Dana Nessel is reminding Michiganders to be  on the lookout for scammers now that the U.S. Department of Education  has made available the application for student loan debt relief  announced by the Biden Administration.

Here are the highlights of the announced loan debt relief:

1. The  current student loan repayment pause has been extended a final time  until December 31, 2022, with payments resuming in January 2023.
2. The  U.S. Department of Education will provide up to $20,000 in debt  cancellation to Pell Grant recipients with loans held by the Department  of Education and up to $10,000 in debt cancellation to non-Pell Grant  recipients. Borrowers are eligible for this relief if their individual  income is less than $125,000 or $250,000 for households. The application for relief is available here.

3. The  previously announced limited Public Service Loan Program (PSLF) waiver  is still in effect until October 31, 2022. The Public Service Loan  Forgiveness (PSLF) program forgives the remaining balance on your  federal student loans after 120 payments working full-time for federal,  state, Tribal, or local government; military; or a qualifying  non-profit. The limited PSLF waiver allows borrowers to receive credit  for past periods of repayment that would otherwise not qualify for  PSLF.  For more information on eligibility and requirements, go to the public service loan forgiveness website.

AG  Nessel encourages residents to follow these tips to avoid scams seeking  to take advantage of borrowers’ eagerness to obtain debt relief.     

1. For more information about this relief, visit the Federal Student Aid website and/or their loan servicer. Do not provide your personal or financial  information in response to unsolicited emails, phone calls, or texts  either purportedly from the federal government or a company claiming to  be able to assist you with obtaining the announced relief.  
2. Don’t agree to pay anyone for assistance in obtaining this relief.
3. Don’t  be rushed. To get you to act fast, scammers say you could miss  qualifying for repayment plans, loan consolidation, or loan forgiveness  programs if you don’t sign up right away. Take your time and check it  out. 
4. Don’t  give away your FSA ID. Some scammers claim they need your FSA ID to  help you, but don’t share your FSA ID with anyone. Dishonest people  could use that information to get into your account and steal your  identity.

“The  opportunity for debt forgiveness is also an opportunity for scammers to  try and gain access to your personal and financial information,” said  Nessel. “It is important to remember that the federal government will  not proactively email or text you to take advantage of this program.  Residents should rely on legitimate sources for information and not fall  for messages that create a sense of urgency or demand financial  information.”

Those who wish to make a report about potential scams, can do so with the Attorney General’s Consumer Protection team by filing a complaint online or by calling 877-765-8388.

Original source can be found here.