Is a student loan forgiveness offer that requires me to pay a processing fee a scam?
Yes. Legitimate government student loan forgiveness programmes are free to apply for. Any service charging a fee to apply on your behalf is taking your money for something you can do yourself at no cost.
Last reviewed: 10 June 2026
Explanation
Student loan relief scams proliferate whenever government loan forgiveness programmes are in the news. They target borrowers who are anxious about their debt and may not be familiar with the official application process. Callers, emails, and websites claim to be affiliated with the Department of Education or equivalent government body and offer to process your forgiveness application for a fee, often several hundred dollars.
The fee is either pure theft — the company takes your money and disappears — or it charges you for a service that is entirely free: submitting the application forms available on the official student loan servicer's website. Some go further and ask for your Federal Student Aid login credentials, which are then used to take over your account, change your contact information, and redirect any repayment or correspondence.
Government loan forgiveness programmes are applied for directly through your loan servicer or through the official federal student aid website. No legitimate third party needs to be paid to access these programmes, and any organisation claiming to represent the government and charging fees is acting fraudulently.
If someone asks for your FSA ID credentials, treat this as a serious red flag — your login grants full access to your federal loan account.
Common red flags
- Charges a fee for a government programme that is free to apply for
- Claims to be affiliated with the Department of Education or loan servicer
- Asks for your Federal Student Aid login details
- Promises guaranteed forgiveness regardless of your eligibility
- Pressures you to sign power of attorney documents
- Contact came unsolicited through email, social media, or phone
What to do now
- Do not pay any fee or provide FSA login credentials
- Check official forgiveness programmes directly on studentaid.gov or your servicer's website
- If you already provided credentials, change your FSA ID password immediately
- If you paid a fee, report to the FTC and your state attorney general
- File a complaint with the Consumer Financial Protection Bureau
- Contact your loan servicer directly to confirm your application status
Frequently asked questions
Is it ever worth using a third-party student loan consultant?
Regulated financial advisers can legitimately provide guidance on repayment options for a fee. However, they cannot provide access to any programme that you cannot access yourself for free, and they should never ask for your loan servicer login.
How do I know which forgiveness programmes I actually qualify for?
The official studentaid.gov website (US) lists all federal programmes with eligibility criteria. Your loan servicer can also advise you at no charge.