In Case You Missed It, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) sent a letter to Education Secretary Cardona urging a joint effort to protect student loan borrowers against shameless scammers who claim to offer “help” with loans. Politico covered the letter and the Department’s initial response in its morning education newsletter.
PREVENTING STUDENT DEBT SCAMS — House Education and the Workforce Chair Virginia Foxx is urging the Education Department to work together on making sure student loan borrowers don’t get taken advantage of as repayment is underway.
“While student loan borrowers are able to interact at no cost with the loan system, many borrowers don’t know this,” Foxx wrote. “These scammers, seizing on this ignorance, often claim to work on behalf of the Department or the ‘Student Loan Debt Department’ and charge a high fee to ‘help’ borrowers obtain loan forgiveness or pay down their loans.”
“You and I agree that these companies must be stopped, and I appreciated your willingness to speak with me a few weeks ago about this,” Foxx added.
“As the student loan payment pause has ended, we know that scammers may try to defraud and cheat hardworking families,” the [Education Department] spokesperson said. “The Secretary appreciates the Chairwoman’s attention to this important, bipartisan issue. The Biden-Harris Administration continues to take aggressive action every day to protect borrowers, ensure the integrity of the federal student aid programs and safeguard taxpayer dollars.”
To read Foxx’s full letter, click here.
To read the full article, click here.