Scammers Are Taking Advantage of the Confusion Around Student Loans After SCOTUS Axed Biden’s Debt Forgiveness Plan

• Scammers are taking advantage of this after the Supreme Court overruled President Joe Biden’s student loan forgiveness plan.
• The Federal Trade Commission has issued a notice warning against providing student loan information.
• Student loan payments are set to resume in October, but borrowers may be given some flexibility.

Federal and state officials warn of scammers taking advantage of student-loan future uncertainty after Supreme Court strikes landmark ruling nullifying President Joe Biden’s pardon plan .

“If you’ve taken out federal student loans, you’ve probably heard about the Supreme Court ruling and know that repayments will begin again in October.” Federal Trade Commission In a post-decision notice, he wrote: “But we may also hear about scammers taking advantage of the chaos of big news like this.”

The FTC has provided some suggestions for avoiding deception by fraudsters.

• Don’t pay for help getting student loans because “no company can do anything you can’t do for yourself”.
• Do not give out your Federal Student Aid login information to anyone
• Do not trust anyone who promises debt forgiveness or loan forgiveness, even if they claim to be from the Department of Education.

Federal Communications Commission also warned Americans for offers directed to “websites other than StudentAid.gov”. and “if the caller/text messager asks for your federal student aid ID, bank account number, or credit card information.”

Chief Justice John Roberts wrote the High Court’s 6-3 ruling finding that Biden and his administration overstepped their powers by proposing a nearly $400 billion loan forgiveness plan based on 9/11-era law. rice field. Roberts said a plan of this magnitude would require more explicit congressional approval. Biden later said he would try again, this time under the 1965 law.

Meanwhile, federal student loan payments are set to resume in October. Insiders have previously reported that the Department of Education is exploring ways to give borrowers some flexibility if payments continue after a lengthy suspension related to the COVID-19 pandemic.

Federal authorities aren’t the only ones paying attention to scammers. New Hampshire Attorney General John M. Formera also warned of an increase in fraud following the court’s ruling.

“Scam calls and text messages often use widely publicized current affairs to add legitimacy and friendliness to their fraud schemes,” wrote Formera and the FCC in a joint warning. “Scammers may use these calls and text messages to coerce consumers into paying or providing personal information.”

Student loan related scams aren’t the only scams on the rise these days. In June, the FTC said,consumer warning“He warned Medicare customers not to give their Medicare number over the phone. The commission said Medicare fraud and abuse cost the government about $60 billion each year.