Loan forgiveness hoax targets former students

A recent social media offer has confused alumni and former students of universities nationwide. Its claim?

“Ripped off borrowers by Sallie Mae and Navient are now approved to remove all student loans with new 2019 Forgiveness Program. This happens once every 100 years – Apply Now before it’s too late!”

One sponsored post on Facebook targets schools specifically. For example, “Charleston Southern University has given approval for complete forgiveness to all former students. Last day to sign up!” A screenshot depicts what the ad looks like.

Both Sallie Mae and Navient have verified that this is a hoax.

CSU Director of Financial Aid and Veterans Services Teri Karges said that a report has been filed with Sallie Mae and Navient and offers simple advice to former CSU students. “If it seems too good to be true, it usually is,” she said. “Lenders do offer some great repayment options and ways to save money, but you should always be careful with social media information.”

Karges advises student loan bearers to check with your university or the lender/servicer of your loan.

The Department of Education confirmed no new student loan forgiveness program that wipes away loans owed to Navient or Sallie Mae, according to an investigative report by WUSA in Washington, D.C.

There are programs for federal student aid, such as the Public Service Loan Forgiveness Program – which offers loan forgiveness after 10 years of employment by a government or nonprofit organization – or the Teacher Loan Forgiveness Program that offers forgiveness after five years of work in a low-income school or educational service agency.

To learn more about these and other special situations, go to studentaid.ed.gov.

Related Stories