Student loan forgiveness scams: fees, fake calls and your FSA ID

What a student loan scam sounds like

The FTC says it often starts with a call from someone who can get your loans forgiven now, for a fee. They may say they are with Federal Student Aid or the Department of Education, and they may already know your balance or account number. They say the offer is only available for a limited time.

The Education Department's Office of Inspector General says the department would not use language like you must act now, time running out or you have been selected. Scammers also use official-looking names, seals and logos, and the FTC warns that they target people in Spanish and other languages too.

Why your FSA ID matters

Your FSA ID is the login for your StudentAid.gov account. The Office of Inspector General says no one except you should ever need it, including people who say they work at your school or your loan servicer.

The FTC says a scammer with your FSA ID can cut off contact between you and your servicer, and can use it to get into your account and steal your identity.

What is free, and where to get it

Repayment plans, consolidation and forgiveness programs are all free to apply for. Start at StudentAid.gov/repay, or call your loan servicer, which you can find by logging in to StudentAid.gov. The FTC adds that no one can get you special access to forgiveness you do not qualify for.

If you are unsure whether an email about your loans is real, the FTC suggests calling the Federal Student Aid Information Center at 1-800-433-3243. Look closely at the sender: scammers use lookalike addresses, such as a zero in place of the letter O.

A real case of illegal upfront fees

In 2025 the FTC described its case against Panda Benefit Services, which it said collected more than $16.7 million in illegal upfront fees from people seeking student loan help. The companies are now banned from the debt relief industry.

The FTC's rule of thumb: if someone wants money before they have helped you with your student loans, walk away.

If it already happened

1. If you shared your FSA ID, log in at StudentAid.gov, change your password right away and do not share the new one.
2. Call your loan servicer and ask whether anyone has changed your contact details, payment plan or the people allowed to act for you.
3. Stop any further payments to the company by calling your bank or card company, and ask whether past payments can be reversed.
4. If you gave your Social Security number or bank details, get a recovery plan at IdentityTheft.gov.
5. Report it to the Education Department's Office of Inspector General at oig.ed.gov and keep any emails, texts or contracts.

• ReportFraud.ftc.govReport the scam to the Federal Trade Commission.
• IC3.govThe FBI’s internet crime complaint center, for losses online.
• IdentityTheft.govIf they got your ID, Social Security number or account details.

Questions