Student loan forgiveness scams: how to spot fake debt relief offers
Quick answer
A company that charges upfront fees, asks for your FSA ID, or says it's tied to the Department of Education and can get your loans forgiven is a scam. Only scammers charge before they help. Use your loan servicer listed on the Department of Education's website and report it at ReportFraud.ftc.gov.
- Comes by
- Phone call, Text, Email, Social media, Website, Ad
- Pretends to be
- U.S. Department of Education
- Last updated
How it works
Scammers pretend to work with, or for, the Department of Education (the department is the one being impersonated). They promise forgiveness, lower payments or a special program, often by phone, text, email, ads or social media.
The FTC describes the same moves again and again: they say you must act fast or miss out on repayment plans, consolidation or forgiveness. They charge a fee up front, which is illegal for debt relief. And they ask for your FSA ID, the login for your federal student aid account.
With your FSA ID they can lock you out, change your contact details and take over your loan account. In cases the FTC has brought, defendants used fake claims about a "Biden Loan Forgiveness" plan, posted fake reviews and pretended to be affiliated with the Department.
Red flags
- A fee before any help, or a monthly "processing" charge
- A request for your FSA ID or password
- Claims they're affiliated with the Department of Education
- A promise of guaranteed forgiveness, or a "special" program you must join today
- Pressure to act fast or miss a deadline
- Fake reviews and testimonials on their website or social pages
Example message
We've reviewed your account and you qualify for immediate loan forgiveness. This program closes soon. Call [phone number] or visit [link] and have your account login ready.
What to do
- 1
Stop and don't share your FSA ID
The Department of Education won't ask for it. Don't give it to anyone who contacts you first.
- 2
Check your servicer yourself
The FTC says to make sure you're working with a federal servicer listed on the Department of Education's website, using the contact details listed there. Names and numbers can be spoofed.
- 3
If you paid, call your bank or card issuer
Tell them it was fraud and ask to stop or dispute the payment. Keep receipts and messages.
- 4
If you gave your FSA ID, change it
Change the password right away, and change it on any other account that uses it. Check your loan account for changes you didn't make.
- 5
Report it
Report it at ReportFraud.ftc.gov and tell your state attorney general too.
Report it
Check if your details are exposed with Serus
Scammers find your number and address on data brokers and people-search sites. Serus removes them.
Why you got it
Debt relief scammers target people with student loans using lists of names, phone numbers and emails that come from data breaches and people-search sites. A call that knows your name and that you have loans feels credible, which is the point. Serus finds where your phone number, address and email are listed on people-search sites and removes them, and alerts you when your details show up in a breach, so fewer scammers can reach you.
Frequently asked
Is it legal for a company to charge upfront fees for student loan help?
No. The FTC says it's illegal for debt relief companies to charge you before they help, so an upfront fee is a sign of a scam.
Will the Department of Education ask for my FSA ID?
No. The FTC says the Department won't ask for it, but a scammer would.
How do I find my real servicer?
Check that your servicer appears on the Department of Education's website and use the contact details listed there.
Where do I report a student loan scam?
Report it to the FTC at ReportFraud.ftc.gov and tell your state attorney general.
Sources
Something wrong or out of date? Tell us and we'll re-check it.
