FTC warns about student loan scams following Supreme Court decision

Scammers are apt to people pupil indebtedness borrowers aft the Supreme Court struck down the Biden administration's indebtedness forgiveness program and arsenic indebtedness repayments are poised to restart successful the fall, according to the Federal Trade Commission.

Scammers often "take vantage of disorder astir large quality similar this," the FTC said successful a consumer alert issued Saturday.

"If you're disquieted astir repaying your loans, the offers to 'help' tin beryllium tempting," the alert said. "Scammers are apt to commencement blasting retired robocalls and texts astir 'helping' you with your loans."

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The Biden medication forgiveness program would person erased up to $20,000 of national pupil loans for tens of millions of borrowers.

Estimates suggest astir 14 cardinal radical would person had their pupil indebtedness fully erased. Now, they and different borrowers indispensable brace for monthly indebtedness payments to restart successful October, aft much than 3 years of an interest-free pause.

President Joe Biden said aft the Supreme Court's ruling connected Friday that his medication would prosecute different way to present indebtedness forgiveness. And erstwhile payments restart, determination volition besides beryllium a 12-month play during which borrowers won't look the harshest consequences of missing payments, including default oregon antagonistic marks connected a recognition report, Biden said.

In the meantime, present are 3 ways to spot a pupil indebtedness scam should a fraudster effort to interaction you, according to the FTC.

1. Don't spot anyone who promises indebtedness alleviation oregon indebtedness forgiveness.

Scammers effort to look real, with official-looking names, seals and logos, the FTC said. They whitethorn accidental they're affiliated with the U.S. Department of Education.

"They committedness peculiar entree to repayment plans oregon forgiveness options — which don't exist," the FTC said. "If you're tempted, dilatory down, bent up and log into your pupil indebtedness relationship to reappraisal your options."

2. Don't springiness distant your FSA ID login information.

Anyone who says they request your Federal Student Aid ID to assistance you is simply a scammer, the FTC said.

"If you stock it, the scammer tin chopped disconnected interaction betwixt you and your servicer — and adjacent bargain your identity," the bureau wrote.

3. Never wage for assistance with your pupil loans.

"There's thing a institution tin bash that you can't bash yourself for free," the FTC said.

You tin get assistance astatine StudentAid.gov/repay. Go straight to your indebtedness servicer if your loans are private, the FTC said.