Fraud Alert: Identifying Student Loan Scams

The Business of Deception

Student loan "debt relief" companies aggressively market via Facebook, Instagram, and robocalls, promising to wipe out your debt, negotiate with the government, or instantly secure your forgiveness.

The Ultimate Rule: Never Pay for Paperwork

The Department of Education's programs are 100% free to access. You never have to pay a fee to consolidate your loans, switch to an income-driven repayment plan, or apply for forgiveness.

Watch out for these massive red flags:

• They demand upfront fees or monthly "maintenance" fees.
• They ask for your FSA ID password (doing so violates federal terms of service and compromises your identity).
• They claim ties to "special government programs" like the "Biden Forgiveness Act."
• They pressure you to sign a Power of Attorney.

If you are targeted, report the company directly to the Consumer Financial Protection Bureau (CFPB).