Arkansas AG warns of student loan forgiveness scams

The federal government recently announced plans to cancel up to $20,000 in federal student loans per borrower and to extend the pause on federal student loan repayments through the end of the year.

In addition, the federal government announced important changes to public service loan forgiveness (PSLF) and income-driven repayment plans. With these major changes, Arkansas Attorney General Leslie Rutledge is warning consumers that these new policies will likely lead to an increase in con artists perpetrating student loan relief scams. 

Her office has issued a few tips to keep in mind if you’re going through the student loan forgiveness process.

If an unknown individual asks for your personal information, including your Federal Student Aid ID (FSA ID), do not respond. Neither your loan servicer, nor the Department of Education (DOE) will ask for your personal information over the phone or in an email.

Never pay upfront for assistance with your student loan debt.

Be patient. The DOE will need time to implement the new programs and get relief to borrowers. No company can help you speed up the process. You can subscribe for updates from the DOE here.

Contact your loan servicer directly with any questions. Your loan servicer can help you get access to qualifying programs, like debt relief or repayment options. Make sure you ask if you qualify for PSLF or income-driven repayment.

Remember: Anyone promising instant debt relief or pressuring you to work with them is a scammer.

For more information about the Arkansas Attorney General’s office, call (800) 482-8982, email consumer@ArkansasAG.gov or visit ArkansasAG.gov.