Student Loan Debt Relief Scams
Information about Student Loan Debt Relief Scams.
How It Works
You’ve probably seen ads from companies promising to help with your student loan debt. Here’s what you should know: there’s nothing a student loan debt relief company can do for you that you can’t do yourself for free. And some of the companies that promise relief are scams.
How to Prevent It
- Never pay an up-front fee. It’s illegal for companies to charge you before they help you. If you pay up front to reduce or get rid of your student loan debt, you might not get any help — or your money back.
- Only scammers promise fast loan forgiveness. Before they know the details of your situation, scammers might say they can quickly get rid of your loans through a loan forgiveness program — programs most people won’t qualify for. Or they might say they will wipe out your loans by disputing them. But they can’t do either.
- A Department of Education seal doesn’t mean it’s legit. Scammers use official-looking names, seals and logos, and tell you they have special access to certain repayment plans, new federal loan consolidations, or loan forgiveness programs. They don’t. If you have federal loans, go to the Department of Education directly at StudentAid.gov.
- Don’t be rushed into a bad decision. To get you to act fast, scammers tell you that you could miss qualifying for repayment plans, loan consolidation, or loan forgiveness programs if you don’t sign up right away. Take your time and check it out.
- Don’t give away your FSA ID. Some scammers claim they need your FSA ID to help you, but don’t share your FSA ID with anyone. Dishonest people could use that information to get into your account and take control of your personal information.
If you lost money you should act immediately:
- If you sent cash, report it immediately to the postal service or whatever company you used. If you act quickly you may be able to stop delivery by giving the tracking number to the delivery company.
- If you gave personal information to the scammer you may be subject to identity theft. Learn what to do.
- Report scams to the Federal Trade Commission: Report Now