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
Student loan forgiveness scams exploit awareness of real government forgiveness programmes. Fraudsters pose as dedicated forgiveness services, charge application or processing fees, and may even harvest login credentials to hijack accounts. Every legitimate federal forgiveness programme is free to apply to directly through official channels.
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
If you have paid a fee or shared credentials, change your FSA ID password immediately, contact your loan servicer, and report the company to the FTC, your state attorney general, and the Consumer Financial Protection Bureau.
Frequently asked questions
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.