How do I spot a fake student loan relief or forgiveness offer?
Fake loan relief companies charge upfront fees to access forgiveness programmes that are free to apply for directly — never pay a third party to lower or discharge your federal student loans.
Last reviewed: 10 June 2026
Explanation
Student loan debt affects millions of people, making them a prime target for third-party companies that promise faster relief, access to 'secret' forgiveness programmes, or help navigating forgiveness applications. In reality, all US federal student loan forgiveness programmes — Public Service Loan Forgiveness, income-driven repayment forgiveness, and any broad relief — are administered free of charge through your loan servicer or directly at studentaid.gov.
Fraudulent companies charge upfront fees of hundreds or even thousands of dollars. They may ask you to sign a power of attorney so they can communicate with your servicer on your behalf, then redirect your loan payments to themselves. They may also promise outcomes that do not exist — complete discharge for private loans, guaranteed approval for PSLF — and do nothing while collecting fees.
Your loan servicer (MOHELA, Nelnet, Aidvantage, etc.) is required to help you enrol in forgiveness programmes and income-driven repayment plans at no charge. The official portal is studentaid.gov. Any website that is not studentaid.gov and promises to 'apply for you' for a fee is unnecessary at best and fraudulent at worst.
If you have already signed an agreement with a third party, you can revoke any power of attorney with your servicer, update your contact information, and cancel the payment arrangement.
Common red flags
- Charges an upfront fee to apply for forgiveness or repayment plans that are free
- Claims to have exclusive access to programmes or knowledge your servicer does not
- Asks you to sign a power of attorney to manage your loan on your behalf
- Promises guaranteed loan discharge for private loans
- Asks you to redirect loan payments to a third-party account
- Website is not studentaid.gov but claims to be affiliated with the Department of Education
What to do now
- Apply for any federal forgiveness programme directly at studentaid.gov — it is free
- Revoke any power of attorney filed with your servicer
- Report the company to the CFPB at consumerfinance.gov and to your state attorney general
- If you paid fees, attempt a credit card chargeback for 'services not as described'
- Contact your servicer to update your contact address and payment account details
Frequently asked questions
Are there any legitimate student loan relief companies?
Non-profit credit counsellors and some HUD-approved agencies provide free financial guidance. You should never pay upfront fees to a for-profit company to access government programmes.
Can private student loans be forgiven?
Private loans are not eligible for federal forgiveness programmes. Any company claiming to forgive private loans through a federal programme is either misinformed or fraudulent.
What is a student loan servicer and how do I contact mine?
Your servicer is the company assigned to manage your federal loans. Log in to studentaid.gov to see who your servicer is and find their official contact details.