Navigating student loan forgiveness can be challenging, especially with the rise of scams targeting borrowers. The Department of Education (ED) has started sending emails to federal student loan holders, outlining options for potential debt relief, which can amount to up to $20,000 for eligible borrowers. However, as the pandemic-era relief diminishes, fraudsters are taking advantage of the confusion surrounding these offers. Scammers may impersonate legitimate organizations, demanding personal information or upfront fees for services that are actually free. Key signs of a scam include requests for processing fees, urgent action demands, and unrealistic promises of debt forgiveness beyond federal limits. To protect yourself, verify the legitimacy of any communication by checking the sender's email address and never share sensitive information over the phone. If you suspect fraud, take immediate action by updating your accounts, contacting your loan servicer, and reporting the incident to the appropriate authorities.
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