LYNCHBURG, Va. (WSET) — The Better Business Bureau is sounding the alarm about a new student loan forgiveness scam.
"They'll call you. Believe it or not, we've gotten complaints that they use the name the Biden team. So the use of the president's name on top of it. So the call the person or the other the phone student maybe is starting to think this is legit," said Barry Moore, President, and CEO of the Better Business Bureau serving Central Virginia.
This comes after President Joe Biden pledged to cancel up to $10,000 in federal student loans and up to $20,000 for Pell Grant recipients.
Moore said the scammer's goal is to take advantage of folks while they anxiously wait for their relief.
"Let's face it, there are so many students that want it to be true. They want that loan forgiveness forgiven. So they're vulnerable. So right away, phone and email became the number one and two ways to get a hold of someone," said Moore.
Moore said the scammers will call your phone or email and ask for your personal information.
"It is a lot of money. Who's not going to jump at that? If somebody emails me or calls me, what they're phishing for, is my full name, my address, where did I go to school? If they contacted me, they should know where I went to school, you would think they would know the bank that I might have a loan with. They're asking for account numbers, they're going to try to get as much information as I will provide. So, it's low-hanging fruit," said Moore.
Moore said to not share any information with these people. He said to hang up if you are skeptical of the caller and report it to the BBB tracker.
"We're talking about the U.S. federal government," he said. "That's not how they do things. So, just be careful on that. Just the best advice we always give, is just hang up. Don't try to be a detective. Don't try to try to figure it all out. Just hang up, and stop giving them information immediately. Don't take the call if you have that ability to screen a scam call."
If you do have any questions about your student loan forgiveness, call the U.S. Department of Education directly.
The BBB shared tips to spot the scam:
Vague or unclear fees charged before you get the money.There are often fees charged for loans: application fees, appraisals, and credit report fees. A real lender will post those fees prominently and collect them from the money they are lending you, but a scam lender may try to collect them as a condition for you getting money. Any up-front fee you need to pay before getting the loan is a cue to walk away.
Avoid guarantees and unusual payment methods.Real lenders never guarantee a loan in advance. They will check your credit score and other documents before providing an interest rate and/or loan amount and will not ask you to pay an upfront fee. Fees are never paid via Green Dot MoneyPaks, iTunes cards, or wiring money. Unusual payment methods and payments to an individual are a big tip-off.
Do your research. Scammers try to trick you by pretending to be from official or trustworthy institutions (including Better Business Bureau or your current lender) or sounding like a known organization.
Contact the agency directly to check the program is real.
Lenders and loan brokers must register where they do business.
To check registration, in the U.S., call your state Attorney General’s office or your state’s Department of Banking or Financial Regulation. In Canada, contact the Office of the Superintendent of Financial Institutions.
ncG1vNJzZmihlJa1sLrEsKpnm5%2BifK%2Bx1qxmp5mknryvedaoqaWcX6OyuHnSraydnZ6peq27wKdkn6einLa3sc2eqqxlo5iurr%2BMqKVmrJiaerO10p5km5qSYsCixdJmmZ6spJq%2Fbq7UrKCnnaOoeqPB0Z6YrmWWmrGmvsClZKWnkaPAbrzEpaNmn6KWu7V50Z6aoqiZmru1v4yuqmaclaWus8DMnqWtZZ%2Bbeqaw1JyYraGfow%3D%3D