Scammers use sensitive information trick student loan borrowers

RALEIGH, NC– The Biden administration’s student loan forgiveness plan is not only attracting criticism but scammers too. This time-scammers are promising victims far more financial forgiveness than what is possible and using detailed and previously hacked information to trick victims into believing the scam is legitimate.

The Better Business Bureau of Eastern North Carolina put out a warning after a scammer called one student loan borrower-and told them they could pay off up to $60,000 dollars-if the borrower paid them an initial fee.

Earlier this year, the Biden administration announced it would wipe $10,000 of student loan debt from qualifying borrowers-who met income requirements and $20,000 for Pell grant recipients.

“Whenever there is a major event in the news like this scammers are eager to jump on it,” explained Nick Hill with the BBB.

One North Carolina resident was recently targeted and says she doesn’t even have student loans, she hung up. But in many cases scammers are often much more sophisticated-they know who owes on loans, and sometimes will even know sensitive information like your social security number, graduation date and even federal student aid information.

"Anytime someone is calling and asking for money, it’s a huge read flag," Hill said.

The loan forgiveness program is currently on pause due to a legal challenge, however, borrowers can still currently apply.