Are student loan forgiveness programs real?

Yes, legitimate federal forgiveness programs exist, such as Public Service Loan Forgiveness (PSLF) and income-driven repayment forgiveness. These are administered for free through the Department of Education. Any company charging fees for these services is a scam.

How do I apply for real student loan forgiveness?

Visit studentaid.gov or contact your loan servicer directly. All legitimate applications are free. Do not pay any company to submit applications on your behalf.

What if I already paid a student loan scam company?

Contact your bank to dispute the charges. File complaints with the FTC at reportfraud.ftc.gov, your state attorney general, and the Consumer Financial Protection Bureau (CFPB).

Student Loan Scams: Fake Forgiveness & Relief Fraud

Overview

Student loan scams prey on borrowers seeking relief from education debt. Scammers promise loan forgiveness, debt elimination, or dramatically reduced payments in exchange for upfront fees. They often impersonate the Department of Education or legitimate loan servicers, creating urgency by claiming limited-time forgiveness programs. Legitimate student loan assistance is always free through your servicer or the Department of Education.

How This Scam Works

Companies charge upfront fees of hundreds or thousands of dollars for student loan assistance services that are available for free through the Department of Education.

Scammers impersonate your loan servicer or the Department of Education, claiming you qualify for a special forgiveness program that requires immediate action.

Fraudulent companies ask you to sign a third-party authorization form, then change your loan payment address to their company, redirecting your payments to them.

Fake websites mimic official government portals to collect your personal information and Federal Student Aid credentials.

Warning Signs

⚠Promises of immediate or guaranteed loan forgiveness

⚠Requests for upfront fees before any services are provided

⚠Pressure to act immediately before a deadline expires

⚠Requests for your Federal Student Aid (FSA) login credentials

⚠Companies that claim special relationships with the Department of Education

⚠Unsolicited calls or emails about student loan relief programs

Real Scam Examples

These are examples of messages used in this type of scam.

Phone Call

Congratulations! Based on your student loan profile, you qualify for the new Biden Student Loan Forgiveness Program. This program has limited spots and closes in 48 hours. We just need a one-time processing fee of $499 to submit your application.

Subject: Action Required - Student Loan Forgiveness Application. Your federal student loans may be eligible for 100% forgiveness under the new relief act. Click here to verify your eligibility before the enrollment period ends on Friday.

How to Protect Yourself

1Use free official resources only

Apply for income-driven repayment plans and forgiveness programs for free at studentaid.gov or by contacting your loan servicer directly. Never pay for help with federal loans.

2Never share your FSA credentials

Your Federal Student Aid ID gives access to your loan accounts. Never share these credentials with any third party. No legitimate company needs your FSA login.

3Research any company before signing up

Check with the Better Business Bureau, FTC, and your state attorney general before engaging with any student loan relief company.

4Verify directly with your servicer

If you receive a call about your loans, hang up and call your loan servicer directly using the number on your billing statement.

Frequently Asked Questions

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