Scam alert: Potential threats will arise amid Biden's Student Forgiveness Plan

With the Biden Administration recently announcing debt relief for many student loan borrowers, state leaders are asking loan holders to beware of potential scammers. Here are a few safety nets to keep information safe. 

With the Biden Administration recently announcing debt relief for many student loan borrowers, state leaders are asking loan holders to beware of potential scammers. Here are a few safety nets to keep information safe. 

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With the Biden Administration recently announcing debt relief for many student loan borrowers, state leaders are asking loan holders to beware of potential scammers seeking unsolicited propositions to gather personal and financial information for ill reasons. 

"It is important to remember that the federal government will not proactively email or text anyone to take advantage of the student loan debt relief program. Residents should rely on legitimate sources for information and not fall for messages that create a sense of urgency or demand financial information," said Attorney General Dana Nessel in a recent news release. 

"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," Nessel adds. 

A few tips mentioned in the news release include borrowers never agreeing to pay for assistance in obtaining student loan debt relief.

Another major red flag is being rushed; a common practice for scammers is to say qualifying repayment plan terms are ending soon, and you must act now. A loan consolidation or forgiveness program will not end if you don’t sign up immediately. A better approach is to take it slow, research and check out authentic legitimacy to make wise choices, the news release explained. 

In addition, remember the student loan borrowers' FSA ID is private. Do not offer that ID number to anyone. It is an easy avenue for scammers to steal someone's identity.