The American Bankers Association Foundation today released a new infographic providing consumers with information on the prevalence of student loan debt forgiveness scams and red flags they can look out for to avoid falling victim. It is the second of four planned infographics that highlight scams targeting college students as part of the foundation’s Get Smart About Credit campaign. The first infographic was released in September.
According to the new infographic, 43 million Americans have outstanding federal student loans, totaling more than $1.6 trillion. Scammers target these individuals with deceptive marketing tactics that promise student loan debt forgiveness. In 2017, a partnership between the Federal Trade Commission and state law enforcement offices uncovered more than $95 million lost to student loan debt forgiveness schemes.
Banks of all sizes participating in the Get Smart About Credit campaign are encouraged to share the infographics with their customers and distribute the information in the communities they serve.
“We know many consumers across the country are in the process of exploring the student loan debt forgiveness opportunities following the Biden administration announcement in late August,” said Lindsay Torrico, executive director of the ABA Foundation. “As they do so, it’s important they know about these scams and remain on high alert for suspicious behaviors that may indicate a criminal scheme.”