Supreme Court Ruling on Student Debt Relief Could Bring Out Scammers
💲 Major news stories bring out scammers, warned NH Attorney General John Formella
💲 NH Sen. Jeanne Shaheen urged congressional action on student debt relief
💲 President Biden said he's working on another plan, but offered no details
The U.S. Supreme Court's ruling Friday striking down President Joe Biden's plan to cancel up to $20,000 in student loan debt warned against scammers who offer a seemingly easy way out.
Attorney General John Formella said to be wary of calls or texts offering debt relief, debt settlement, or forgiveness programs. Scammers will often take advantage of major news stories to bring legitimacy to their schemes. They will use robocalls and text messages to pressure people into providing personal information or to make a "payment".
The calls may claim to be from the “student loan forgiveness center” or from a state “forgiveness center." They may talk about "settlements" with the Department of Education, or the chance to "fully discharge" a student loan.
During a White House briefing, Biden said he was disappointed, discouraged, and angry about the court's decision.
"I believe the Court’s decision to strike down my student debt relief program was a mistake, was wrong. I’m not going to stop fighting to deliver borrowers what they need particularly those at the bottom end of the economic scale. So, we need to find a new way. And we're moving as fast as we can," Biden said.
The president said that he is working with Education Secretary Miguel A. Cardona on a plan under the Higher Education Act of 1965 that will allow his administration to compromise, waive, or release loans under certain circumstances.
An "on-ramp" system to help those who will be financially strained by having to make loan payments is forthcoming, according to the president. It will temporarily remove the threat of default or having one's credit harmed. Biden did not offer details about the plan.
Sen. Jeanne Shaheen urged Congressional action on student loan forgiveness and said New Hampshire student loan borrowers continue to be among those with the highest debt in the nation.
"Congress needs to act here, which is why I’ve long championed measures to support students in breaking down barriers to an affordable college education. I’ll continue those efforts and urge fellow lawmakers to take action to provide long-term solutions to the student debt crisis," Shaheen said in a tweet.