SEATTLE — The Biden Administration announced Friday it will use existing student loan forgiveness programs to cancel another round of student debt, totaling $7.4 billion for 277,000 borrowers.
While borrowers await potentially having any debt wiped out - the Better Business Bureau (BBB)encourages graduates to research trustworthy sources related to federal repayment plans before giving personal information.
Due to the uptick in student loan forgiveness scams, the FTC has sent more than $4.1 million in refunds to borrowers who lost money to scammers, according to the BBB.
KING 5 spoke with Cameron Nakashima, of the BBB Great West + Pacific, to find out how student loan borrowers can avoid falling victim of scams.
Nakashima said people should beware of companies promising to reduce debt by lowering payments through enrollment in student loan forgiveness or other programs.
The BBB said scammers may also falsely promise to apply monthly payments to consumers’ student loans and to improve credit scores. The scammer asks the consumer to pay a small fee so they can negotiate with the lender on your behalf.
It's important to keep your personal information private and never give it to an unsolicited source, according to the BBB.
To get more tips and watch the full interview - click the video above.
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