FTC warns of student loan forgiveness scams

Now that applications for the federal student loan debt relief is open, the Federal Trade Commission (FTC) is warning eligible applicants of potential scams.

The FTC warned that scammers would now be trying to get money and personal information from people.

>> Apply now: Student loan forgiveness application website goes live

Here’s what the FTC says people should know to steer clear of scammers:

• Apply at StudentAid.gov/DebtRelief
• Don’t pay to apply: The application is free. Anyone who says an applicant needs to pay, or guarantees approval or quicker forgiveness, is a scammer.
• Know what to share, where, and when: The real application will ask for your name, birth date, Social Security number, phone number and address. When you apply online, you don’t have to upload or attach any documents.
• Know what not to share: No one should ask for FSA ID, bank account or credit card information. Some applicants will need to verify their income, but that will happen after the Education Department starts processing applications.
• Expect email updates from Education Department: After you apply, you may hear from Education Department to upload tax documents verifying your income or to give updates on your application. Emails will only come from: noreply@studentaid.gov, noreply@debtrelief.studentaid.gov, or ed.gov@public.govdelivery.com.
• Follow Education Department’s process if your application is denied: Anyone who says they can get you approved (for a fee) is a scammer.

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Anyone with questions can call FSA’s phone line at 1-833-932-3439.

If you have spotted a scam, you can report it at ReportFraud.ftc.gov.

Applicants should apply by Nov. 15 in order to receive forgiveness of the debt before the student loan payment pause ends on Dec. 31.

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