Scammers targeting student-loan borrowers in Wisconsin and elsewhere are shifting into high gear - spurred by the uncertainty surrounding President Joseph R. Biden's debt-cancellation plan. The Supreme Court will hear a case in late February that seeks to strike down the administration's plan to offer up to $20,000 in debt relief to low-income student loan borrowers.

Michelle Grajales, staff attorney with the Federal Trade Commission attorney, said fraudsters are playing on people's anxieties.

"A major red flag is any company that calls you up and asks you to pay now for help with your loans later. Because that's something that's specifically prohibited under one of the rules we enforce. And so it is really unlikely to be a legitimate company," she said.

The president's debt-cancellation plan is currently on hold while the litigation continues, so it is not processing any applications. The website of the U.S. Department of Education, studentaid.gov, has a link to sign up to be notified if the program is restarted. The pause on federal student loan payments has been extended until the litigation is resolved. The best place to start for accurate information about your loans is to contact your federal loan servicer.

Some scams promise to reduce or zero out your monthly payment, and some target parents who have co-signed on Parent Plus loans. Grijales said the familiar adage applies: "if it sounds too good to be true, it probably is," she said.

"It could be loan forgiveness. It could be, 'Hey, pay us X amount, and we'll get your loans forgiven right now, or we'll get some large amounts of your principal balance forgiven or canceled,' right? And that might be a benefit that the consumer doesn't actually qualify for," she said.

She added that other scams are circulating where they purport to be your loan servicer and ask that you route your payment through them. Other scams are intended primarily to get people to divulge their personal identity or banking information. For more tips, go to the Federal Trade Commission website.

Small Business Saturday has come and gone and the North Carolina Sustainable Business Council urged people to keep "shopping local" this season.

The council said supporting homegrown businesses creates jobs and makes communities healthier. One of those businesses is the Little River Pecan Farm, with 100 pecan trees on a 10-acre section of sixth-generation land.

Crissy Neville, the farm's owner, emphasized the need to support local growers. She said shopping at local farms and agro-tourism sites preserves family businesses, but can also benefit the environment.

"Shipping is not involved, trucking is not involved," Neville pointed out. "Essentially, you know, you're buying locally, and that's the best thing that you possibly could do for lowering your carbon footprint."

Neville cited the added benefit of knowing where your food comes from. Studies estimate processed food in the U.S. travels more than 1,300 miles, and produce may travel more than 1,500 miles before reaching the table if it is not grown locally.

Rebekah Miel, owner of Miel Creative Studio in Durham, works with nonprofits to help them amplify their work. She pointed out local businesses often help their communities in ways beyond offering their products or services.

"Small businesses donate 250% more to local nonprofits and community causes," Miel explained. "That is also exemplified in our business. Our 'Design to Give' model means we give at least 5% back to local nonprofits, 1% of which is to local environmental nonprofits."

Anne Shaw, state director for the Small Business Center Network, said there is nothing "small" about the power of small companies. Their overall contribution to the workforce is enormous.

"The 1 million small businesses that exist in North Carolina, they employ 1.8 million employees," Shaw emphasized. "Which represents about 44% of North Carolina employees."

Shaw added research also shows on average, a local retailer will recirculate about 48% of their revenue back into the local economy, compared to about 14% of revenue from a national chain.


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A new report from the Consumer Financial Protection Bureau found the repayment process for federal student loans has been filled with errors.

Repayments began in October following a three-year pandemic-related pause. Since then, complaints of inaccurate bills, late notices and poor customer service have only increased.

Rep. Ayanna Pressley, D-Mass., said borrowers are struggling to reach loan service providers on the phone while more than 20,000 people received grossly incorrect bills.

"Now imagine opening your mail and seeing a bill for 100,000 dollars. This is ridiculous," Pressley asserted.

Pressley pointed out borrowers' financial situations are as precarious now as they were when the pandemic began and argued they deserve student debt relief. Critics countered American taxpayers should not be saddled with college loan debt they did not incur.

Officials with the Consumer Financial Protection Bureau said they are working to protect student loan borrowers from incompetent or predatory student loan servicers, including the more than 800,000 people who missed their first payment since the pause was lifted because their bills were mailed out too late.

Rohit Chopra, director of the bureau, said borrowers should be cautious, especially when talking to third-parties contracted by loan servicers for bill payments.

"If you're having trouble, please file a complaint," Chopra urged. "We're often able to get those individuals across the country fixes and sometimes clear answers on what really needs to happen."

The Supreme Court struck down President Biden's student loan forgiveness plan earlier this year, affecting more than 800,000 student borrowers in Massachusetts who would have been eligible to have some if not all their debt erased.


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Today is Giving Tuesday, a day when millions of Americans are expected to make charitable donations.

But it can also be a field day for scammers. Experts have tips on how to make sure your contribution ends up in the right hands.

California Attorney General Rob Bonta says charities are required to file financial reports with the state's Department of Justice, so you can go online and check their registration status.

"You can use our registry: search tool@oag.ca.gov, under charities to ensure a charity is in good standing and is up to date with its financial reporting requirements," Bonta explained.

Consumers are urged to read those financial reports, to find out what percentage of their revenue is spent on the mission versus on staff and overhead. Experts also warn people not to fall for high-pressure tactics used on telemarketing calls.

Bonta urged people to check the name, email and web address carefully to be certain you don't fall prey to a scammer posing as a real charity.

"Take, for example, the American Red Cross of California. Sounds good. But that's not the American Red Cross that we know and love," he said. "It sounds like the Red Cross, but that was actually the name of a now-defunct organization that our office ordered to 'cease and desist' back in 2019 for misleading donors."

Officials also advise consumers to be careful if asked to make a donation via text, QR code or portable credit card reader. Verify that the person asking truly represents a legitimate charity, get a receipt, and check your credit card statement right away to make sure you were charged the correct amount.


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