Is a student loan forgiveness offer by phone or email a scam?
Unsolicited student loan forgiveness offers are almost always scams. Genuine forgiveness programmes are administered through official government portals — never by cold call.
Last reviewed: 1 June 2026
Explanation
Student loan relief scams target borrowers with promises of instant forgiveness or reduced payments in exchange for a fee or your loan servicer login credentials. They may claim to be affiliated with the government or your loan servicer, use official-sounding names, and reference real government programmes to add credibility. Paying any upfront fee for loan forgiveness is a waste of money — legitimate programmes are free to apply for directly through your government's student loan portal. Giving your login credentials to a third party can result in your account being changed to forward payments to the scammer or your personal data being sold.
Common red flags
- Upfront fee required to process forgiveness or reduced payments
- Caller asks for your federal student loan login or Social Security number
- Promises guaranteed forgiveness regardless of your loan type or employment
- Pressure to sign a power of attorney or third-party authorisation immediately
What to do now
- Do not pay any upfront fee for loan relief
- Check your government's official student aid website for legitimate programmes
- If you gave login credentials, change your password immediately
- Report the offer to your national consumer protection agency
Frequently asked questions
Are there legitimate third-party companies that help with student loans?
Some legitimate non-profit credit counselling services exist, but they are accredited by recognised bodies and do not charge upfront fees. Always verify accreditation independently.