DES MOINES, Iowa — The Iowa Attorney General's Office and the Better Business Bureau Serving Greater Iowa are warning Iowans to watch out for scams relating to student loan forgiveness.
This week an alert warning Iowans to be aware of potential scams was posted on the Iowa Attorney General's Office Facebook page, reading in part:
"Criminals have been known to use times of change and uncertainty to their advantage. Iowans must be on the lookout for these scammers and know the signs to avoid their deceptions."
Biden announced a student debt relief program Wednesday, Aug. 24, which promises up to $10,000 in loan cancellation for many Americans.
While the program's details are still being figured out, Iowa organizations are emphasizing the need for caution in the meantime.
"We're trying to be proactive and warn consumers and student loan borrowers that scammers are out there and they can use this as an opportunity to get your personal and financial information," said Ashlee Kieler, an AG office communications specialist.
Kieler noted they haven't received any complaints of scams so far.
Chris Coleman, president of Better Business Bureau Serving Greater Iowa, said his organization hasn't heard of any scams yet either, but the BBB is expecting some elaborate scams in the future.
"Not only have people had a chance to kind of prepare and figure out how can we best take advantage of the vulnerable, it's also a lot of money," Coleman said. "You know a lot of people are going to get $10,000 or $20,000 forgiven, so it's a big price tag for scam artists. They don't try to have to trick you out of $35 or $75, they're going to try to trick you out of $10,000."
Kieler noted people need to remember all of the details of the loan forgiveness plan have not been straightened out, which means no one will be calling from the Department of Education.
If you do get a call like that, it's likely a scam. She also noted never give out personal information on to a caller or someone who texts, and if someone asks to receive money to help get rid of loans, it's a scam.
"Don't rush into anything," Kieler said. "If somebody does contact you with a sense of emergency in their voice please take the time to confirm that information you're getting is true."
To stay up-to-date on the latest information about loan forgiveness, it's best to keep tabs on the official Federal Student Aid website.