(KFOR NEWS July 22, 2021) Student-loan forgiveness has become an increasingly popular scam targeting young adults, and as an October deadline looms, consumer advocates are warning people to watch their wallets.
Tami Barrett with the Better Business Bureau’s Lincoln and greater Nebraska branch says she expects to see an uptick in fraudulent activity this fall as the current COVID-19 pause in federal student-loan payments draws to a close on October 1st.
“A lot of people think it’s just older people, but actually the (Federal Trade Commission) and the Better Business Bureau reveal that 44% of people who actually get scammed are between the ages of 20 and 29 years old.”
By comparison, just 20% of people between 70 and 79 have lost money to fraud. People with student loan debt present a giant target for scammers. According to the U-S Department of Education, 43 million student-loan borrowers in the U-S owe a total of one-point-six trillion dollars in student loans. The average U-S household with student loans owes more than $57,000, with women and people of color holding the most debt.