Is that student loan forgiveness offer a scam?
Student loan forgiveness scams have surged in line with public attention on federal loan forgiveness programs. The pitch: a company contacts you by phone, email, or social media, claims you qualify for a federal forgiveness program, and charges an upfront fee — typically $500 to $3,000 — to 'process your application'. In some cases they also ask for your Federal Student Aid (FSA) ID and password.
Every legitimate federal student loan forgiveness program in the United States is free to apply for through studentaid.gov. There is no processing fee. No company can move you to the front of a queue, guarantee forgiveness, or access programs that aren't publicly available to you. Any company charging for this service is either providing something you could do yourself for free, or taking your money and doing nothing.
The FSA ID theft variant is particularly damaging: once scammers have your FSA ID, they can change your repayment plan, redirect communications, or lock you out of your own account.
🚩 Red flags to watch for
- ▶Any fee to apply for, process, or 'fast-track' a student loan forgiveness application.
- ▶A promise of 'guaranteed' forgiveness — no company can guarantee a government program's outcome.
- ▶A request for your FSA ID username and password — never share these with anyone.
- ▶Cold contact (call, text, email) claiming you've been 'pre-selected' or 'pre-qualified' for forgiveness.
- ▶Claims to have special access or relationships with the Department of Education.
- ▶Pressure to act immediately before a 'program deadline' that isn't real.
✅ What to do
- 1Apply for any federal forgiveness program yourself at no cost through studentaid.gov — this is the official US Department of Education portal for all student aid.
- 2If you're unsure what you qualify for, contact your loan servicer directly using the number on your loan statements.
- 3Never share your FSA ID with anyone. If you have already shared it, change your password immediately at fsaid.ed.gov.
- 4Report scams to the FTC (reportfraud.ftc.gov) and the Consumer Financial Protection Bureau (consumerfinance.gov).
📣 Where to report (by country)
🇺🇸 United States
🇬🇧 United Kingdom
- Action Fraud
- Police Scotland — call 101
🇦🇺 Australia
🇨🇦 Canada
🌍 Everywhere else
- Contact your local police and your bank immediately
- If money was sent, ask your bank about a recall request — act within hours
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Common questions
Is there any legitimate company that can help with student loans?
Yes — nonprofit credit counsellors and some licensed attorneys provide legitimate student loan advice. The key difference: legitimate advisors do not charge fees to submit a forgiveness application (which is free) and do not need your FSA ID. They advise; they don't 'apply on your behalf' for a premium.
I gave a company my FSA ID. What should I do?
Go to fsaid.ed.gov immediately and change your password and challenge questions. Check your loan account on studentaid.gov to ensure your contact information, repayment plan, and linked bank account have not been changed. Contact your loan servicer to flag a potential account compromise.