FTC: Student Loan Forgiveness Scams Spike 800% Following Policy Changes
Scammers exploit confusion over new federal student loan programs to steal personal information.
The Federal Trade Commission reports an alarming 800% increase in student loan forgiveness scams following recent policy announcements. Fraudsters pose as government officials or loan servicers, claiming they can expedite forgiveness applications for upfront fees ranging from $500 to $5,000. Victims provide Social Security numbers, FSA IDs, and banking information, leading to identity theft and drained accounts. The FTC emphasizes: legitimate student loan forgiveness never requires upfront payment, the Department of Education will never call demanding immediate action, and all official applications are free through StudentAid.gov. Over 50,000 complaints have been filed in the past month alone. Scammers are particularly targeting borrowers through social media ads and unsolicited text messages.
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Scammers exploit confusion over new federal student loan programs to steal personal information.
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