Beware Of Student Loan Debt Relief Scams, Michigan AG Nessel Warns

MICHIGAN — Michigan Attorney General Dana Nessel warned Michiganders on Friday to watch out for scammers looking to take advantage of borrowers pursuing the new sweeping student loan debt relief recently announced by the Biden Administration.

Nearly half of Michiganders with student loan debt could see their loans cut in half or eliminated entirely under President Joe Biden's measure. Overall, about 1.4 million Michiganders have a total of $51.3 billion in student debt.

"The opportunity for debt forgiveness is also an opportunity for scammers to try and gain access to your personal and financial information," Nessel said. "It is important to remember that the federal government will not proactively email or text you to take advantage of this program. Residents should rely on legitimate sources for information and not fall for messages that create a sense of urgency or demand financial information."

Nessel also encouraged Michiganders to follow these tips to avoid scams:

1. For more information about this relief, visit the Federal Student Aid websiteand/or their loan servicer.
2. Do not provide your personal or financial information in response to unsolicited emails, phone calls, or texts either purportedly from the federal government or a company claiming to be able to assist you with obtaining the announced relief.
3. Don’t agree to pay anyone for assistance in obtaining this relief.
4. Don’t be rushed. To get you to act fast, scammers say you could miss qualifying for repayment plans, loan consolidation, or loan forgiveness programs if you don’t sign up right away. Take your time and check it out.
5. Don’t give away your FSA ID. Some scammers claim they need your FSA ID to help you, but don’t share your FSA ID with anyone. Dishonest people could use that information to get into your account and steal your identity.