BBB warning of student loan forgiveness scammers
LAFAYETTE, La. (KLFY) -- The pause on federal student-loan payments was extended until Aug. 31, 2022 by President Joe Biden, but that delay hasn’t stopped scammers.
"One of the biggest scams we know about 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 rates that are a lot better than you can typically find,” Chris Babin of the Better Business Bureau said.
“We found out that people are engaging in these conversations making those payments, and it’s had nothing to do with their student loans, and they're just losing money,” he said.
With an extension on student loans, for many borrowers their loans are on pause without penalty of interest.
Zachary Hebert, a sophomore at UL Lafayette says he will soon be getting his bachelor's degree in music and recording arts, and says right now he doesn't have to worry about repaying his student loans.
“My parents are helping me, so I’m hoping that when I get out, I will be fortunate enough to get a high paying job so that I can help my parents.”
He told News 10 that he was unaware of student loan forgiveness scammers.
"Everyone goes to college. It's already a lot of money. They go there to make a living for themselves and give themselves a better life and future. To steal from that is just kind of gross,” Hebert said.
If you think you are being scammed, contact your current loan servicer or the Department of Education or go to student aid.gov.