BBB warns against student loan forgiveness scams

LAFAYETTE, La. (KLFY) – The pause on federal student loan payments was extended until August 31, 2022 by President Joe Biden, but that delay hasn’t stopped the scammers.

“One of the biggest scams we know of with student loan forgiveness is that it starts with an unsolicited phone call or email telling you that your loans are eligible for a forgiveness program with much better rates. than the ones you can usually find.” Chris Babin of Better Business Bureau mentioned.

“We found that people are engaging in these conversations while making these payments, and it has nothing to do with their student loans, and they’re just losing money,” he said.

With a student loan extension, for many borrowers, their loans are on pause without an interest penalty.

Zachary Hebert, sophomore at UL Lafayette says he’ll be getting his bachelor’s degree in music and recording arts soon and he doesn’t have to worry about paying off his student loans just yet.

“My parents help me, so I hope when I get out I’ll have the chance to get a good paying job so I can help my parents.”

He told News 10 that he was unaware of student loan forgiveness scammers.

“Everyone goes to college. That’s already a lot of money. They go there to earn a living and give themselves a better life and future. Stealing that is just a little rude,” Hebert said.

If you think you have been scammed, contact your current loan officer or the Department of Education or go to student aid.gov.

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