Be on the lookout for student loan scams

Student borrowers in New York State should be aware of potential debt relief scams as the federal government moves to award up to $20,000 in debt forgiveness, the state said Friday. Governor Kathy Hochul.

“New Yorkers work hard for every dollar they earn, and the student loan forgiveness plan will be essential to help ease mounting debt pressures,” Hochul said. “Unfortunately, unscrupulous individuals and crooks take advantage of this to take advantage of others. Today we warn the crooks: We will not let you take advantage of New York workers. I urge everyone to stay vigilant and stay informed to stop these bad actors in their tracks.”

State officials said borrowers should look for reliable information on websites with “.gov” addresses. The Federal Ministry of Education has its own webpage to answer questions about the issues.

Borrowers should also not trust people or programs that promise early or special access or guaranteed eligibility. And borrowers should not give out their personal information such as student aid IDs or social security numbers to anyone who contacts them. Scams can be reported on the Federal Student Aid website.

“While many New Yorkers struggle to repay their student loans, scammers are preying on those borrowers who are in desperate need of immediate student loan relief,” the state’s secretary of state said. of New York, Robert Rodriguez. “The New York State Division of Consumer Protection reminds borrowers to use only trusted government websites and not to respond to unsolicited offers for forgiveness because debt forgiveness scams student loans arose after the recent announcement of the federal government’s pardon.”

Hochul this week approved a measure to simplify and expand New York’s public service loan forgiveness program. The measure expands the definition of full-time employment so that more people can access the program.

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