NEW YORK – The state of New York has issued a warning about scammers who have taken advantage of the recent scheme student debt cancellation to steal borrowers’ money and personal information, Governor Kathy Hochul said.
The scammers are creating a sense of urgency by posing as government agencies and promising an immediate reduction in student loan. The Governor reminded borrowers that it is important to remain vigilant, well informed and prepared for any fraud related to this new relief plan.
The Democrat has enacted a legislation to broaden and simplify access to the federal program Statewide public service loan amnesty. This new legislation establishes what qualifies as full-time employment for the purposes of accessing the PSLF and allows public service employers to certify employment on behalf of workers, removing substantial obstacles to demand and access to program.
“New Yorkers work hard for every dollar they earn, and the student loan forgiveness plan will be key to helping reduce the pressure of rising debt,” Governor Hochul said. “Unfortunately, unscrupulous people and scammers are using this as an opportunity to take advantage of others. We are warning scammers: We will not allow hard-working New Yorkers to be exploited. I urge everyone to remain vigilant and stay informed to stop these. bad actors in their tracks.
What you need to know about the federal student aid plan:
The plan includes:
- A final extension of the student loan repayment suspension until December 31, 2022 and the loan amnesty up to $ 20,000 for those who qualify.
- Enhance 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.
- Reduce the cost of college to protect prospective students.
- The US Department of Education is working quickly to implement student loan improvements, but details will be available soon. The Department of Education recommends logging into your account StudentAid.gov to make sure your contact information is up to date and to sign up to receive alerts when new information becomes available.
How to avoid student loan amnesty scams:
- Look for reliable information and sources. Go to the “.gov” websites only when you are looking for help. The United States Department of Education recently launched a website to provide borrowers with a single place for accurate and up-to-date program information. By logging into the site, borrowers will find not only general information but also a detailed FAQ section that provides information on the student debt relief plan.
- Do not trust any person or program that promises you early or special access, or guarantees that you will be eligible. A company may contact you and tell you that it will help you get loan forgiveness, debt relief, or debt cancellation for a fee. They can also offer help with applying early. The loan amnesty application will be launched in early October and early access is not possible and you will never have to pay for the help with your federal student aid. If you get any of these offers, it’s a scam.
- Do not give your personal information, Federal Student Aid ID, or Social Security number to anyone who contacts you. No one from the Department of Education will call or text you about this initiative. Make sure you only work with the United States Department of Education and never reveal your personal information or your account password to anyone. Genuine emails to borrowers will only come from [email protected]
- 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 United States Department of Education offers tips and additional resources here.
The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has not been able to reach a solution on their own. The Consumer Helpline 1-800-697-1220 is available Monday through Friday from 8:30 am to 4:30 pm, excluding holidays, and Consumer complaints can be submitted at any time here.