Who: The FTC tracks student loan and debt relief scams.
When to use: Use when someone charged a fee for loan help or made false promises.
What to prepare:
- Company name
- What they promised
- Amount paid
Go to FTC ReportFraud~5 min
Category: Identity & benefits
Student loan scams
How it often plays out
A company calls Derek and promises to lower his federal student loan payments or get forgiveness for a one-time fee of $599. He pays; they do nothing and stop returning calls. The U.S. Department of Education and your servicer do not charge to apply for income-driven plans or forgiveness—anyone who does is running a scam. Legitimate help is free at StudentAid.gov and through your servicer; if someone asks for money upfront, hang up and report them.
How to spot it
Common red flags: pressure to act immediately, requests for payment by gift card or wire, offers that seem too good to be true, or unsolicited requests for your personal or financial details.
Do's and don'ts
Do
- Use StudentAid.gov and your servicer directly for relief or consolidation.
- Save any ads, emails, or phone numbers from the scammer.
- Report to the FTC and CFPB.
Don't
- Pay for "loan forgiveness" or "consolidation" services.
- Believe that you must pay to access income-driven plans or forgiveness.
- Give your FSA ID or account access to a company that called you.
Summary & what to do
Scammers promise to lower payments, forgive loans, or "consolidate" for a fee. The U.S. Department of Education and your servicer do not charge for applying for relief. Report to the FTC and CFPB.
What to do right now
- Do not pay for "loan forgiveness" or "consolidation" services. Use StudentAid.gov and your servicer directly.
- Save any ads, emails, or phone numbers from the scammer.
- Report to the FTC and CFPB.
Where to report
Who: The CFPB takes complaints about student loans and servicers.
When to use: Use for problems with your loan or a company that contacted you.
What to prepare:
- Servicer or company
- What happened
CFPB complaint portal~10 min