OHIO — Student loan borrowers are getting fair warning from the federal government about how to avoid loan forgiveness scams once the process opens. 

What You Need To Know

  • Officials warn against responding to instant messages via social media about student loan forgiveness

  • Calls indicating your debt can be consolidated or eliminated are red flags

  • Report scammers

  • Dec. 31 is when the student loan forgiveness application process opens

  • In January of 2023, student loan repayments resume

The Biden Administration released a list of do’s and don’ts related to the process, as there is an expectation that scammers are already looking to take advantage of borrowers trying to get from under the debt. 

Don'ts

  • Don’t pay for loan forgiveness
  • Don’t reveal student aid IDs, passwords, account information or personal info 
  • Don’t refinance without knowing the risks

Do's

  • Sign up for ed.gov notifications
  • Create a student loan ID
  • Update your info with your loan provider
  • Report scammers

While there are plans for the federal government to leverage social media and get out accurate information about the process, there are also plans to aggressively target scam prevention. Plus, there is a goal to collaborate with states to share scam information and educate borrowers so they don’t become the next victim. 

In the meantime, the Better Business Bureau of Central Ohio said borrowers should know that getting a call, text or email indicating, “Hey, you're eligible for a student loan forgiveness program," or, "Hey, I see you're carrying a lot of student loan debt. We can consolidate that for you, or we can get those loans forgiven for you,” is a red flag. 

This is especially true for those who hack social media accounts and pretend to be friends of the borrower by sending instant messages which say things like, “I was able to get a loan forgiveness. I see your name is on the list, too. You want to reach out to this person at this phone number.”

Whether it’s a phone number or a link, LeeAnne Lanigan, director of Consumer Relations and Investigations at the BBB, said don’t buy into it because once they have any personal information, your bank account could be “debited on a monthly basis for money to go to them and not to your student loans.” 

“Typically, banks are not able to help you with this because their position is kind of that you filled out all the paperwork. You agreed to let this person take the money out of your account," she added.

However, if by chance you do get scammed, you’ll want to contact the Federal Trade Commission and complete an ID theft packet. This, in addition to contacting your local Better Business Bureau and the Department of Motor Vehicles if you relinquished driver's license information.