Student loan borrowers are reminded to only use trusted government websites
Gov. Kathy Hochul issued a warning to consumers Friday about scammers taking advantage of the recent student debt relief plan to steal borrowers’ money and personal information.
Scammers are creating a sense of urgency by posing as government agencies and promising immediate student loan relief.
Borrowers are reminded that it is important to stay alert, well informed and prepared for any fraud related to this new relief plan. Yesterday, Governor Hochul signed legislation to expand and simplify access to the federal Public Service Loan Forgiveness program statewide. This new legislation establishes what qualifies as full-time employment for purposes of accessing PSLF and allows utility employers to certify employment on behalf of workers, removing substantial barriers to applying for and accessing the program.
“New Yorkers work hard for every dollar they earn and the student loan forgiveness plan will be critical in helping reduce the pressures of mounting debt,” Governor Hochul said. “Unfortunately, unscrupulous people and scammers are using this as an opportunity to take advantage of others. Today, we’re putting scammers on notice: We won’t let them take advantage of hard-working New Yorkers. I urge everyone to stay vigilant and stay informed to stop these bad actors in their tracks.”
The US Department of Education is working quickly to implement the student loan improvements, but more details will be available soon. The Department of Education recommends logging into your StudentAid.gov account to ensure your contact information is up to date and to sign up to receive alerts when new information becomes available.
Federal Student Aid Plan
On August 24, 2022, the Biden Administration announced a three-part plan to help working-class and middle-class federal student loan borrowers. The plan includes:
1- A final extension of the student loan payment pause through December 31, 2022 and loan forgiveness of up to $20,000 for qualified individuals
2- Enhance the Public Service Loan Forgiveness program and create a new income-based repayment plan to lower future monthly payments for low- and middle-income borrowers.
3- Reduce the cost of college to protect future students.
How to avoid scams:
Look for reliable information and sources. Only go to the “.gov” websites when looking for help.
Posted on September 16, 2022