Don’t Waste Your Money: Loan Forgiveness Scam

Don’t Waste Your Money: Loan Forgiveness Scam
(Source: RNN)

(WTOL) - If you have college loans, you know what a burden they can be. For that reason, ads for loan forgiveness programs may certainly catch your eye. This election season we are hearing a lot about college debt, and talk of reducing or even forgiving some student loans.

Nichelle Culver is struggling to pay off her college loans, so she was captivated by a Facebook Ad that said," Billions in student loan debt has been forgiven."

When she called the Washington D.C. number in the Ad, she soon learned it was a scam.

The "grant administrator" told her to purchase a $300 iTunes gift card for an application fee. So she did, but instead of getting her grant, she got another request for more cash.

"'We need an additional $500.' I was like $500? I just gave you $300, I'm not going to give any more."

The FTC says this is the classic government scam.

  1. Grants require a lengthy application process.
  2. The FTC says the government will never ask for an application fee via Western Union or iTunes, which are untraceable.

All Nichelle could do now is file a police report, and warn others of the grant that was too good to be true.

At this point, there is not federal loan forgiveness program, and certainly not one that asks for hundreds of dollars upfront.

Don't Waste Your Money is a registered trademark of the EW Scripps Co.

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