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Don’t Fall for These Common Student Loan Scams

Are you struggling with student loan debt and looking for a way out? Unfortunately, scammers are taking advantage of this vulnerable population by offering fake student loan assistance programs. In this blog post, we’ll discuss some of the most common student loan scams and how you can avoid them.

According to the Federal Trade Commission (FTC), student loan scams have become increasingly common in recent years. Scammers are preying on vulnerable borrowers who are struggling to make their loan payments. These scammers promise to help borrowers reduce or eliminate their student loan debt in exchange for a fee, but in reality, they’re just taking advantage of the situation.

Common Student Loan Scams:

Advanced Fee Scams

In an advanced fee scam, a company promises to help you reduce your student loan debt but requires you to pay an upfront fee first. Unfortunately, these companies don’t actually provide any assistance and often disappear after receiving payment.

Forgiveness Scams

Forgiveness scams are a type of advanced fee scam where the company promises to help you get your student loans forgiven. In reality, there are very few cases where student loan forgiveness is possible, and these companies are just taking advantage of borrowers’ confusion and desperation.

Debt Relief Scams

In a debt relief scam, a company promises to negotiate with your lender on your behalf to reduce your loan payments or interest rates. However, these companies often charge high fees and don’t actually provide any meaningful assistance.

Phishing Scams

Phishing scams are a type of online fraud where scammers create fake websites that look like legitimate loan servicing companies. They then ask you to enter your personal information, which they can use to steal your identity or access your bank accounts.

How to Spot Student Loan Scams

To avoid falling victim to a student loan scam, there are a few things you can do:

  • Be cautious of companies that require upfront fees or payments.
  • Research the company before providing any personal information or payment.
  • Never provide your FSA ID or other sensitive information to a third party.
  • Remember that there is no such thing as guaranteed loan forgiveness or debt relief.


Student loan scams are a growing problem, but by staying informed and cautious, you can avoid falling victim to them. Remember that legitimate loan servicing companies will never ask you for upfront fees or personal information, and there are no guaranteed ways to have your student loans forgiven or reduced. If you have any concerns about your student loans or need assistance, contact your loan servicer or the Department of Education for guidance.

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