Student Loan Forgiveness Scam

Federal student loan programs are free to apply to. Anyone calling and asking for an "application fee", "processing fee", or "consolidation fee" to access forgiveness is running a scam. Real loan servicers do not cold-call borrowers.

Warning signs

• Cold call offering loan forgiveness, consolidation, or "Biden plan" enrollment.
• Demand for upfront fees, often $700–$1,500.
• Requests for your FSA ID (federal student-aid login) to "process" the forgiveness.
• Pressure to act before a "deadline" that does not exist.

Real-world scripts

• "You qualify for the new federal forgiveness program — for a one-time fee of $899 we can process it."
• "Verify your FSA ID and we'll handle the paperwork for you."

If you receive this call

• Hang up. Never share your FSA ID or pay an application fee.
• Go directly to studentaid.gov for any legitimate federal loan action.
• Report at reportfraud.ftc.gov.

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