Scammers are taking advantage of the confusion around student loans after SCOTUS axed Biden's debt forgiveness plan
Jacquelyn Martin/AP
- After the Supreme Court struck down President Joe Biden's student loan forgiveness plan, scammers are taking advantage.
- The Federal Trade Commission issued a notice warning against giving away student loan information.
- Student loan payments are set to resume in October, though there could be some flexibility for borrowers.
Federal and state officials are warning about scammers taking advantage of uncertainty around the future of student loans after the Supreme Court issued a landmark ruling striking down President Joe Biden's forgiveness plan.
"If you have federal student loans, you've probably heard about the Supreme Court decision and know that repayments are restarting in October," the Federal Trade Commission wrote in a notice after the decision. "But you might also be hearing from scammers who take advantage of confusion around big news like this."
The FTC provided several suggestions to avoid getting bilked by scammers:
- Don't pay for help accessing student loans as "there's nothing a company can do that you can't do yourself for free."
- Avoid giving out your Federal Student Aid login
- Don't trust anyone promising debt relief or loan forgiveness, even if they claim they're with the Department of Education
The Federal Communications Commission has also warned Americans about any offer that directs to "any website outside of StudentAid.gov." and if a "caller/texter asks for your Federal Student Aid ID, bank account number, or credit card information."
Chief Justice John Roberts wrote the high court's 6-3 ruling that held Biden and his administration overstepped their authority by proposing a nearly $400 billion loan forgiveness plan rooted in a 9/11-era law. Roberts said a program of such sweeping magnitude required more explicit congressional approval. Biden later responded that he will try again, this time under a 1965 law.
In the meantime, payments on federal student loans are set to resume in October. Insider previously reported that the Education Department is looking for ways to provide some flexibility for borrowers are payments continue after a lengthy COVID-19 pandemic-related pause.
It's not just federal officials that are taking notice of the scammers. New Hampshire Attorney General John M. Formella also warned of an increase in scams following the court's decision.
"Scam calls and texts often use broadly publicized current events to add legitimacy and familiarity to their fraudulent schemes," Formella and FCC wrote in a joint alert. "Scammers might use these calls or texts to pressure consumers to make a payment or provide private information."
Student loan-related scams aren't the only scams on the rise as of late. In June, the FTC released a "consumer alert" warning Medicare users to avoid giving out their Medicare numbers over the phone. The commission said that Medicare fraud and abuse cost the government around $60 billion each year.
from Business Insider https://ift.tt/CSTv9jk
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