The Federal Bureau of Investigation has been urging individuals who seek to enroll in the Federal Aid program to be vigilant. They have stated that some scammers may take this opportunity to steal personal information, payment details, and even money.
The Possibility of Fraud
The Federal Student Aid was announced in August 2022. It is a debt relief program for people with outstanding student debt. The purpose of the relief program is to assist with the management of student loans by deducting $10,000 to $20,000 from the credit. Although, the amount deducted may vary depending on whether they are Pell Grant recipients, as mentioned by Bleeping Computer.
This may be perceived as a doorway by scammers to steal various data that may lead to the victims losing money instead. They are many methods by which fraudulent activity could be initiated, which include but are not limited to the following:
Scammers may set up websites that will contain an application form. The application form, in turn, may ask for personal information to "proceed" with the process of the relief program.
They may send SMS or emails stating that you are eligible for the Federal Student Aid program and then ask for credentials that can be used for fraudulent activities.
Fraudsters may offer assistance to expedite or process the relief aid in exchange for a service fee, to which no services will be provided. The Department of Education reviews applications on a rolling basis, so there is no way that anyone can prioritize your application.
The same goes for guaranteed approval. There is no way to know whether your application is accepted or denied until it is reviewed.
What to Know to Avoid Getting Scammed
The only way to apply is through StudentAid.gov/DebtRelief, according to FTC Consumer Advice. If you are directed to a different site, it is not legitimate.
Applying for Federal Student Aid will not cost you anything. If you are asked to pay in order to be enrolled or to get started on processing the application, do not respond.
Applicants do not need to log into any accounts in the application process. If you find yourself in a situation where you need to log in to continue with the application, leave the site.
You will not be asked to upload personal or financial documents during the first phase of the application online. The real application will ask for your name, birth date, Social Security number, phone number, and address.
If additional information is requested, make sure the email addresses are "noreply@studentaid.gov," noreply@debtrelief.studentaid.gov," and "ed.gov@public.govdelivery.com."
In the application process, you will not be asked to provide your FSA ID, bank account, or credit card information.
Beneficiaries will not receive distribution notices from the US government through emails, phone calls, or SMS.
If you have spotted scams, be sure to contact ReportFraud.ftc.gov so they may take action.
