A good friend in the industry sent this robocall recording in.
The message says, “This is an important update for . Last week, President Biden’s administration canceled nearly $1 billion 72,000 borrowers, to find out what this means for you and to see if you qualify. Call us back today between eight AM and eight PM Eastern Standard Time.”
It’s a Scam Call
I suspect this is a feeder robocall to get anyone with a student loan to press 1 and get connected with a sales rep for some unknown service.
The message appears to be using one situation as a marketing tool for another.
The actual facts are that the 72,000 that had forgiven student loans were for a very select group of students. Borrowers that are covered by the forgiveness will be identified and notified automatically by the government.
Those that qualified had to meet these criteria:
- Your college or university misled or defrauded you, or your school closed permanently;
You applied for student loan cancellation under borrower defense to student loan repayment forgiveness;
- You proved to the U.S. Department of Education that your school misled or defrauded you, or that your school closed permanently;
- You suffered financial harm; and
- You already got some student loan cancellation, but not all your student loans were cancelled.
Eligible borrowers that are part of this Department of Education-directed forgiveness will begin to receive notices over the next few weeks and the automatic discharge of covered loans will follow.
On March 18, 2021, the Department said, “Beginning today, the Department will ensure that borrowers with approved borrower defense claims to date will have a streamlined path to receiving full loan discharges. This includes borrowers with previously approved claims that received less than a full loan discharge.”
Watch your mail for a notice about this but the odds are you will not have to do anything or call anyone to get the forgiveness if applicable.
Students covered by this move will receive:
- 100% discharge of borrowers’ related federal student loans;
- A reimbursement of any amounts paid on the loans, where appropriate;
- Requests to credit bureaus to remove any related negative credit reporting;
- And if applicable, a reinstatement of federal student aid eligibility.
This program is an effort by the Department of Education to clean up the Borrower Defense to Repayment program that Trump Administration Education Secretary Betsy DeVos had gutted.