How do I protect myself or my student from education and student loan scams?
Federal student aid is managed exclusively through studentaid.gov — any third party charging fees to apply for aid, forgiveness, or scholarships is almost certainly a scam.
Last reviewed: 10 June 2026
Explanation
Students and parents are targeted by multiple overlapping scam categories: fake scholarship programs collecting application fees, student loan debt relief services charging money for things you can do for free, fake college enrollment scams, and accreditation fraud where a diploma mill sells credentials that are not recognised by legitimate employers.
For federal student aid in the US, the only legitimate entry point is studentaid.gov. The FAFSA, loan consolidation, income-driven repayment enrollment, and official loan forgiveness programs (such as Public Service Loan Forgiveness) are all free and managed through that portal. Any company charging fees to 'help' you apply for aid, consolidate loans, or access forgiveness programs is taking money for a service you can access for free.
Scholarship scams promise guaranteed awards in exchange for an application fee. Legitimate scholarships never charge to apply. Search for scholarships through free databases such as Fastweb, College Board's scholarship search, or your state's higher education agency. Be cautious of 'exclusive' scholarships that arrive unsolicited or that require payment to 'unlock' the application.
Diploma mills sell official-looking degrees and transcripts from accredited-sounding institutions that have no legitimate accreditation recognised by the US Department of Education. These credentials do not qualify you for licensed professions (nursing, teaching, law) and employers increasingly screen for them. Verify any unfamiliar institution's accreditation status at the Department of Education's Database of Accredited Postsecondary Institutions.
Common red flags
- Third party charging fees to apply for FAFSA, loan consolidation, or loan forgiveness
- Scholarship requiring an application fee or upfront payment to claim the award
- Unsolicited scholarship notification for which you never applied
- 'University' or 'college' promising a degree based on life experience with minimal coursework
- Accreditation name that sounds official but does not appear on the DoE database
- Pressure to enrol and pay tuition immediately before reviewing accreditation or course materials
What to do now
- Access all federal student aid only through studentaid.gov
- Search scholarships only through free databases — never pay to apply
- Verify institution accreditation at the DoE's accreditation database before enrolling
- Report fake scholarship and student loan debt relief scams to the FTC
- If already enrolled in a diploma mill, contact your state attorney general for options
Frequently asked questions
Are student loan relief companies ever legitimate?
A small number of legitimate non-profit credit counselling agencies help borrowers navigate repayment options at no or low cost. However, any for-profit company charging hundreds or thousands of dollars to access programs available for free through studentaid.gov is likely a scam or at minimum offering poor value.
How do I check if a college's accreditation is legitimate?
Search the institution's name at the US Department of Education's Database of Accredited Postsecondary Institutions and Programs (ope.ed.gov/dapip). For professional licenses, also check with the relevant professional body (nursing boards, state bar for lawyers, teaching certification boards).