FTC alert on scammers and student loan forgiveness

The Federal Trade Commission has posted a consumer alert concerning scammers taking advantage of news coverage of student loan forgiveness programs.

Scammers have called consumers to say they are affiliated with Federal Student Aid (FSA) or the Department of Education, and that they are following up on the consumer's eligibility for a new loan forgiveness program. They may even have information about the consumer's loan, including the balance or account number. But they are looking for two things -- upfront fees, which are illegal, and information like the consumer's FSA ID login information, which can be used by the scammer to cut the consumer off from their loan servicer or steal the consumer's identity.

In a related press release, the FTC announced that Marco Manzi, the ringleader of a student loan debt relief scam, will be permanently banned from the debt relief industry and is required to turn over assets as part of a settlement with the Commission.