Student Loan Forgiveness Scams to Avoid

Scammers may guarantee you eligibility or promise early access to student loan forgiveness, or charge you money to jump the line.

Piggy bank wearing debt forgiveness graduation cap

As pandemic-related assistance expires, there will be a three-part Student Debt Relief Plan, part of which includes loan forgiveness of up to $20,000 as part of the transition to regular payments. Further, the federal student loan payment pause will extend until December 31, 2022, after which payments will resume in January 2023.

While the details are being announced in the coming weeks, many scammers are trying to take advantage of the situation. The Federal Trade Commission (FTC) warns you not to trust anyone who promises they can get your loans forgiven earlier or guarantees you eligibility.
Visit the U.S. Department of Education to sign up for email updates to receive an update when the process is officially opened for debt forgiveness.

Your Contact Information and Loan Servicer
If you have questions regarding your loan, you should contact your loan service provider directly. Federal student loans are assigned to a loan servicer, who works with you on repayment options and other information about your loan.

It’s important to keep your contact information updated with your loan servicer to receive updates about cancellation or pauses to your loan. To identify your loan servicer for loans from the U.S Department of Education:

Do not pay anyone who promises you early access or special consideration, or who guarantees you eligibility. To stay up to date on student loan forgiveness information, visit the U.S. Department of Education’s website for Student Loan Forgiveness.

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.