Real Student Loan Servicer vs Loan-Forgiveness Scam
How to tell your genuine federal student loan servicer from a fraudulent company charging fees to access forgiveness programmes that are free to apply to directly.
Last reviewed: 1 June 2026
Most contact about your student loans is genuine. Your servicer sends statements, tells you when repayment resumes, and answers questions about income-driven plans at no charge, and every federal forgiveness programme can be applied for free through official channels. The scam version works because forgiveness news moves fast and the rules genuinely are complicated. A company calls or advertises on social media, uses official-sounding language about a limited window, and offers to handle the paperwork for a monthly fee. Some ask for your FSA ID so they can act on your behalf, which hands them control of your account. The single distinction that matters is money changing hands: nobody legitimate charges you to apply for a government repayment or forgiveness programme, and nobody legitimate needs your password.
Side-by-side comparison
| Official student loan servicer | Loan forgiveness scam | |
|---|---|---|
| Fees | No fee to apply for income-driven repayment or forgiveness programmes through your servicer or StudentAid.gov | Charges a monthly 'maintenance fee' or one-off 'application fee' to manage forgiveness paperwork |
| Official domain | Communicates from .gov domains; directs you to StudentAid.gov (US) or SLC website (UK) | Uses lookalike domains, unofficial email addresses, or social media messages claiming to be official |
| Promises | Explains eligibility criteria honestly; cannot guarantee forgiveness; does not promise immediate relief | Guarantees immediate or complete loan forgiveness; uses urgency ('limited-time programme') to pressure sign-up |
| Credentials request | Never asks for your FSA ID password; all actions can be completed on StudentAid.gov without sharing login details | Asks you to share your FSA ID or student loan account login so they can 'act on your behalf' |
| Contact initiation | Your servicer contacts you by official post or email about your account; does not solicit by cold call or social media ad | Contacts you unsolicited by phone, text, or social media ad offering forgiveness you did not enquire about |
Common red flags
- Any fee charged to apply for a student loan forgiveness or repayment plan
- Request for your FSA ID, servicer login, or Social Security number via a third-party website
- Unsolicited call or message guaranteeing immediate loan forgiveness
- Website domain that is not .gov or the official servicer
- Pressure to sign a power of attorney authorising the company to manage your loans
Verification steps
- Log in directly to StudentAid.gov (US) or your official servicer portal to check your account status
- Apply for income-driven repayment or forgiveness programmes yourself at no cost through official government sites
- If you are unsure which programmes you qualify for, contact your servicer directly using the number on their official website
What not to do
- Do not pay any third party to apply for a government loan forgiveness programme
- Do not share your FSA ID password or servicer login with any company
- Do not sign a power of attorney for a company you have not independently verified
A safe response
Slow down before you agree to anything. Tell the caller you do not make decisions on unexpected calls and that you will check your own account, then hang up. Log in to StudentAid.gov or your servicer's site by typing the address yourself, or call the number printed on your statement, and ask what you actually qualify for. If you already paid, cancel the payment method, change your FSA ID password, and check your loan record for a changed repayment plan, a new bank account, or a third party added to your file. Then report the company to the FTC, the Consumer Financial Protection Bureau, and your state attorney general. Paying a convincing pitch is common and not a failure of judgement.
Frequently asked questions
Can a company legally charge me to help with my student loans?
Some debt-relief companies operate legally and charge for document preparation, but they are selling you a service you can do yourself for nothing, and the rules on advance fees are strict. Nothing they submit gets special treatment, and no company can reach programmes you could not reach directly. If a firm charges before doing anything, guarantees an outcome, or asks for your FSA ID, treat it as fraudulent rather than merely overpriced.
How do I know if I genuinely qualify for student loan forgiveness?
The US Department of Education lists all forgiveness programmes at StudentAid.gov. Your loan servicer can also advise you at no charge. You never need to pay a third party to check eligibility or submit an application.
What if I already shared my FSA ID with a forgiveness company?
Change your FSA ID password at StudentAid.gov immediately, then check your loan account for any unauthorised changes such as altered repayment plans or bank account numbers. Report the company to the FTC at ReportFraud.ftc.gov.