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Application for student loan handout opens: FTC warns of potential scams
Biden rips Republicans for opposing his student loan handout
Fox News contributor Mollie Hemingway discusses Biden’s student loan handout, First Lady Dr. Jill Biden reportedly being angry over a January press conference of the president’s that wasn’t stopped, and the Democrats’ agenda.
The Federal Trade Commission’s (FTC) division of financial practices has issued a consumer alert about potential student loan debt relief scams in wake of the Biden administration launching the online application for student loan handouts.
Scammers are looking to collect money and personal information from unsuspecting applicants, the FTC explained in its alert on Tuesday, Oct. 18.
President Biden and Education Secretary Miguel Cardona officially launched the online Federal Student Aid debt relief application on Monday.
STUDENT LOAN RELIEF APPLICATION NOW OFFICIALLY AVAILABLE THROUGH ONLINE PORTAL
During the press briefing, Biden announced that eight million applications have been processed automatically.
American borrowers who aren’t included in the automatic processing will have to submit their applications by Dec. 31, 2023.
Eligible applicants who meet the one-time student debt relief plan’s income requirements will have a chance to get a full or partial discharge of up to $20,000 for federal student loans.
The total cost of the loan handouts will amount to $500 billion, according to the Committee for a Responsible Federal Budget. The nation's federal student debt now tops $1.6 trillion after ballooning for years — while the national debt, according to the Treasury Department, currently sits at about $30.9 trillion.
"As people file their applications, [the Department of Education] will review them on a rolling basis," the FTC wrote in its consumer alert. "Pack some patience and follow the process…not those who say they can put you in front of the line. Because those are scammers."
APPLICATION FOR STUDENT LOAN RELIEF IS LIVE, BUT SOME BORROWERS ARE NO LONGER ELIGIBLE
Here are five tips the FTC recommends, so borrowers can protect themselves from student debt relief scams.
1. Only apply on StudentAid.gov
The U.S. government’s student loan debt relief application can only be accessed through the official Federal Student Aid website. The link to the application is StudentAid.gov/DebtRelief – and it’s available in English and Spanish.
No other website has a legitimate application, according to the FTC. Paper applications will become available at a later date, the FTC reported.