New Yorkers cautioned about student debt relief scams

ALBANY | New York leaders are cautioning consumers about scammers taking advantage of the recent student debt relief plan to steal borrowers' money and personal information. Scammers are creating a sense of urgency by impersonating government agencies and promising immediate student loan relief, Gov. Kathy Hochul said Sept. 16. Borrowers are reminded that it's important to stay vigilant, well-informed and prepared for any fraud related to this new relief plan. "New Yorkers work hard for every dollar they earn and the student loan forgiveness plan will be critical to helping reduce the pressures of mounting debt," Gov. Hochul said. "Unfortunately, unscrupulous individuals and scammers are using this as an opportunity to take advantage of others. Today, we're putting scammers on notice: we will not let you take advantage of hard-working New Yorkers. I urge everyone to remain vigilant and stay informed to stop these bad actors in their tracks." WHAT YOU NEED TO KNOW On Aug. 24, the Biden Administration announced a three-part plan to help working and middle-class federal student loan borrowers. The plan includes: -A final extension of the student loan repayment pause through Dec. 31, and loan forgiveness of up to $20,000 for qualified individuals -Improving the Public Service Loan Forgiveness program and creating a new income-driven repayment plan to reduce future monthly payments for lower- and middle-income borrowers. -Reducing the cost of college to protect future students. The U.S. Department of Education is working quickly to implement the improvements to student loans, but many details will be forthcoming. The Department of Education recommends logging in to your StudentAid.gov account to ensure your contact information is up to date and to sign up for alerts for when new information becomes available. HOW TO AVOID LOAN FORGIVENESS SCAMS Officials are offering the following advice to avoid falling victim to loan forgiveness scams: -Seek trusted information and sources. Only go to ".gov" websites when seeking assistance. The U.S. Department of Education recently launched a webpage to provide borrowers with a one-stop location for accurate and up to date information about the program. Upon accessing the site, borrowers will find not only general information but also a detailed Frequently Asked Questions section that provides facts about the student debt relief plan. -Don't trust any person or program who promises you early or special access, or guaranteed eligibility. You might be contacted by a company saying they will help you get loan discharge, forgiveness, cancellation, or debt relief for a fee. They may also offer to help you apply early. The loan forgiveness application will launch in early October and early access is not possible, and you never have to pay for help with your federal student aid. If you receive any of these offers, it's a scam. -Don't give your personal information, Federal Student Aid ID or social security number to anyone who contacts you. Nobody from the Department of Education will be calling you or texting you about this initiative. Make sure you work only with the U.S. Department of Education, and never reveal your personal information or account password to anyone. Genuine emails to borrowers will only come from noreply@studentaid.gov.

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New Yorkers cautioned about student debt relief scams

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