Oregon warns of scams playing on student loan debt forgiveness

Following the recent announcement of the cancellation of $10,000 and $20,000 of federal student loan debt, there has been an increase in scam attempts to take advantage of students.

Oregon’s Division of Financial Regulation (DFR) says these scams can include bogus loan forgiveness and refinance offers.

Here’s more DFR, including where to find legitimate information:

The division reminds people to ignore phone calls, emails, social media posts and other unsolicited messages from people claiming they can help you get your student loans forgiven faster or you saying you should refinance your loan. Do not accept these unexpected offers without first checking whether the offer is legitimate. Chances are it’s a scam. Scammers may use phrases such as “pre-register for any loan discount” or “you need to apply within the next 24 hours”.

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“There are no fees associated with signing up for student loan forgiveness, so don’t fall for these scams,” said DFR administrator TK Keen. “Everyone will have the same opportunities and there is no way to queue up and get a loan canceled any faster.”

There are recent and upcoming changes federal student loans and forgiveness of loans, as well as the Biden administration single cancellation. With these changes, unfortunately, there are people who prey on those who ask for help.

“There is no application available yet for President Biden’s relief package,” said Lane Thompson, Oregon’s student loans ombudsman. “People can be alerted once the program is live by visiting the US Department of Education website and check the “NEWII Federal Student Loan Borrower Updates” box.

A helpful reminder is that while this is not a .gov website, it is not an official federal government site. The main signs to look out for are if they tell you there is an emergency, a warranty, and any kind of secrecy.

“Every time the Department of Education announces changes to the student loan program, the scammers come out of the woodwork,” Thompson said. “The advice remains the same: if it sounds too good to be true, it probably is.”

If you have any questions regarding your student loan eligibility, it is best to go to studentaid.gov. If you believe you have received incorrect information from your service agent, email [email protected] or call our helpline at 888-877-4894 (toll-free).

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