Student loan forgiveness scam

The student-loan-forgiveness scam preys on borrower anxiety about federal student debt. A "specialist" promises to enroll you in a forgiveness program — PSLF, IDR-based forgiveness, borrower defense, "Biden-era" relief — for an upfront fee. They sometimes file the same applications you could file yourself for free at StudentAid.gov, then take a fee for "consultation services."

Worse variants take your federal-loan login credentials, change your contact info to theirs, and "consolidate" your loans in ways that disqualify you from forgiveness programs you were actually eligible for.

The Department of Education and the FTC have repeatedly shut these companies down. New ones replace them within weeks under different names.

Robocall, social-media ad, or website:

"Federal Student Loan Forgiveness Program. You may qualify for up to $50,000 in loan forgiveness under new federal guidelines. Call (888) 555-XXXX to enroll. Limited time."

Or:

"Pay our $899 enrollment fee and we'll process your PSLF application. Average customer saves $X in forgiven debt."

• Upfront fee for "enrollment" in a federal program.
• They ask for your FSA ID (federal student aid login).
• They claim there's a special program you've never heard of.
• They reference "Biden's executive order" or "new federal guidelines" with urgency.
• They guarantee a specific forgiveness amount before reviewing your loans.
• Phone-call hard-sell instead of allowing you to research.
• Communication is via toll-free number and a website with no verifiable physical address.

1. All federal student-loan programs are free to apply for at studentaid.gov. PSLF, IDR, borrower defense, total and permanent disability — all free.
2. Never share your FSA ID with any third party. It gives them control of your loans.
3. Real federal programs do not have "enrollment fees."
4. Contact your actual loan servicer (Nelnet, MOHELA, Aidvantage, Edfinancial, etc.) directly through StudentAid.gov.
5. For genuine help, contact a nonprofit credit counselor (nfcc.org) — free or low-cost.

• Dispute the charge with your credit-card issuer or bank.
• Change your FSA ID password immediately if you shared it.
• Check your loans at studentaid.gov — verify your contact info hasn't been changed, no consolidations you didn't authorize have happened.
• File complaints with the FTC, CFPB, and your state attorney general.
• Contact your loan servicer to flag unauthorized account changes.

• Do not pay any "enrollment fee" for federal student-loan programs.
• Do not share your FSA ID with anyone — not even a person you hire to "help."
• Do not let an unknown company consolidate your loans — consolidation can disqualify you from forgiveness programs.
• Do not ignore urgency claims. Real federal deadlines are published at studentaid.gov.

• FTC: reportfraud.ftc.gov — the broadest US fraud intake; reports flow to thousands of law-enforcement agencies.
• FBI IC3: ic3.gov — the right destination when the scam is internet-enabled (phishing, BEC, romance, crypto).
• CFPB: consumerfinance.gov/complaint — for complaints about banks, money transmitters, payment apps, credit cards, debt collection.
• IdentityTheft.gov — if any identity information (SSN, driver's license, account credentials) was shared.
• Your bank or payment platform. Call the number on the back of your card or use the app's in-product help. Time matters — wires can sometimes be recalled within hours; ACH and Zelle are harder but worth trying.