Idahoans can now apply for student loan forgiveness. Here’s how to apply, scams to avoid

BOISE (Idaho Statesman) — The online application for federal student debt forgiveness is now live, meaning the more than 218,000 Idahoans eligible can apply for relief.

But as millions of borrowers seek debt relief, state and federal leaders warn them to be alert for scams that could dupe them into giving their personal information through spoofed websites or phony government representatives.

Here’s what to know about the application process, how you make sure you’re not falling prey to a scammer, and what student debt relief will generally mean for Idaho borrowers.

BEWARE OF POTENTIAL SCAMS

Shortly after President Biden announced the loan forgiveness program in August, Idaho Attorney General Lawrence Wasden tweeted an alert warning borrowers to guard against potential scams.

“You don’t need to do anything or pay anyone to sign up for the new Student Debt Relief Plan,” Wasden tweeted. “Nobody can get you in early, help you jump in line, or guarantee eligibility. Anybody who says they can or tries to charge you is a scammer.”

You don’t need to do anything or pay anyone to sign up for the new Student Debt Relief Plan. Nobody can get you in early, help you jump in line, or guarantee eligibility. Anybody who says they can or tries to charge you is a scammer. 2/3

— Lawrence G. Wasden (@lawrencewasden) August 26, 2022

Wasden attached a link in a follow-up tweet to the Federal Trade Commission’s consumer advice page, which advises people to report potential scammers to ReportFraud.ftc.gov.

The FTC warns borrowers to be aware of companies promising to help with student loan debt relief.

“There’s nothing a student loan debt relief company can do for you that you can’t do for yourself for free,” the FTC website reads. “And some of the companies that promise relief are scams.”

The FTC issued the following tips for borrowers:

• Never pay an upfront fee. It’s illegal for companies to charge you before they help you, and may not receive any help or get your money back.
• Don’t sign up for quick loan forgiveness programs. Some scammers may promise that they can get you into a loan forgiveness program or wipe out your loans by disputing them. According to the FTC, scammers can’t get you into a program you don’t qualify for or wipe out your loans.
• Don’t trust a Department of Education seal. Some scammers use official-looking seals and logos, but your safest option is to go directly to the Department of Education at StudentAid.gov.
• Don’t act fast; some scammers say you may miss qualifying for a repayment plan or loan consolidation if you don’t sign up immediately. The FTC recommends taking your time and checking out all of the facts.
• Don’t give away your Federal Student Aid ID. People can use your FSA ID to get into your account and steal your identity.

HOW TO APPLY FOR STUDENT DEBT RELIEF

You can find the beta application online at studentaid.gov. The government website allows eligible Americans to apply for up to $20,000 in student debt forgiveness.

Those who earn less than $125,000 as individual filers or less than $250,000 as a family qualify for $10,000 in loan forgiveness. If you received a need-based federal Pell Grant in college, that forgiveness amount is up to $20,000.

The application is available in English and Spanish and prompts borrowers to submit their first and last name, social security number, date of birth and contact information.

Borrowers submit basic identifying information and verify they are the individual named in the application, provide proof of income and affirm they meet the income requirements.

Once complete, you’ll get a confirmation email that your application has been successfully submitted. The Department of Education will review your application, determine if you qualify for relief and work directly with your loan servicer to process it.

“Unless you hear back from the U.S. Department of Education or your loan servicer, you don’t have to take any other action,” the application reads.

The department may follow up with you if it requires additional information to process your application. If it does, it will contact you via email, possibly to ask for the following details:

• Additional information documentation to verify your income.
• If you were enrolled as a “dependent student” anytime between July 1, 2021, and Jun 30, 2022. In that case, the department will request additional information about your parents’ income.
• The department cannot match you to the loan records it has based on the information you provided through your application.

If you’ve been approved for relief, you’ll be notified this has occurred, and your loan servicer has been told to process your loan forgiveness.

“Your loan servicer will notify you when your debt relief has been applied and will share any additional information, such as updates to your outstanding loan balance and updated monthly payment amount (if you still have a balance),” per the online application.

Student loan borrowers have until Dec. 31, 2023, to apply.