Governor Hochul urges New Yorkers to be aware of federal student debt relief scams

Governor Kathy Hochul today issued a warning to consumers about scammers who are taking advantage of the recent student debt relief package to steal borrowers’ money and personal information. Scammers create a sense of urgency by posing as government agencies and promising immediate student loan relief. Borrowers are reminded of the importance of remaining vigilant, knowledgeable and prepared for any fraud related to this new relief plan. Yesterday, Governor Hochul signed legislation to expand and simplify access to the Federal Civil Service Loan Forgiveness Program statewide. This new legislation establishes what is considered full-time employment for purposes of PSLF access and allows public service employers to certify employment on behalf of workers, removing significant barriers to application and access. access to the program.

“New Yorkers work hard for every dollar they earn, and the student loan forgiveness plan will be essential to help ease the pressures of mounting debt,” Governor 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.”

What you need to know about the Federal Student Financial Assistance Plan:

On August 24, 2022, the Biden administration announced a three-part plan to help middle-class and middle-class federal student loan borrowers. The package includes:

  1. A final extension of the student loan repayment pause until December 31, 2022 and loan forgiveness of up to $20,000 for those who qualify
  2. Improve the Public Service Loan Forgiveness Program and create a new income-based repayment plan to reduce future monthly payments for low- and middle-income borrowers.
  3. Reduce the cost of college education to protect future students.

The US Department of Education is working quickly to implement the student loan improvements, but many details will be released. The Department of Education recommends logging into your StudentAid.gov account to ensure your contact information is up to date and to sign up for alerts when new information becomes available.

How to avoid a student loan forgiveness scam:

  1. Look for reliable information and sources. Go only to “.gov” websites when asking for help. The US Department of Education recently launched a webpage to provide borrowers with a one-stop-shop for accurate and up-to-date information about the program. By accessing the site, borrowers will not only find general information, but also a detailed Frequently Asked Questions section that provides facts about the student debt relief plan.
  2. Don’t trust any person or program that promises you early or special access, or guaranteed eligibility. A company may contact you to tell you that they will help you get a loan discharge, forgiveness, forgiveness, 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 will never have to pay aid with your federal student aid. If you receive any of these offers, it’s a scam.
  3. Do not give out your personal information, Federal Student Aid ID number, or Social Security number to anyone who contacts you. No one from the Ministry of Education will call or text you about this initiative. Be sure to only work with the United States Department of Education and never reveal your personal information or account password to anyone. Authentic emails to borrowers will only come from [email protected].
  4. If you come across a scam, report it. Contact the official Federal Student Aid website to file a complaint or contact the Federal Trade Commission. The US Department of Education offers additional guidance and resources here.

Secretary of State Robert J. Rodriguez said: “While many New Yorkers are struggling to repay their student loans, scammers are preying on those borrowers who desperately need immediate student loan relief. The State’s Consumer Protection Division of New York reminds borrowers to use only trusted government websites and not to respond to unsolicited offers for forgiveness as student loan repayment scams arose after the federal government’s recent announcement regarding the sorry. “

State Senator Kevin Thomas said: “It is unfortunate that the excitement and demand for this long-awaited federal student debt relief has created a new window of opportunity for scam artists to exploit those seeking help. I urge New Yorkers looking for help to stay alert and use only people you trust”. gov” websites to access student debt relief information.”

Assemblyman Harvey Epstein said: “I urge New Yorkers to be on the lookout for student loan forgiveness scams. The good news is that there are ways to protect yourself. I commend Governor Hochul for making student loan forgiveness a priority and protecting student borrowers from predatory scams.

The New York State Division of Consumer Protection offers voluntary mediation between a consumer and a business when a consumer has been unable to find a resolution on their own. The Consumer Helpline 1-800-697-1220 is available Monday through Friday from 8:30 a.m. to 4:30 p.m., excluding holidays, and consumer complaints can be filed anytime at https://dos .ny.gov/consumer-protection.

For more consumer protection tips, follow the Social Media Division on Twitter: @NYSConsumer and Facebook: www.facebook.com/nysconsumer.

Comments are closed.