How to spot a student loan scam?

Student loan scams target people who are worried about paying for college or repaying debt. Here’s how to spot them and protect yourself:

Warning signs of a student loan scam

🚩 1. Up-front fees

Legitimate lenders or loan servicers will not charge you a fee to apply, consolidate, or get help with federal student loans.

🚩 2. “Guaranteed approval” or suspicious promises

If someone says “you’re guaranteed a loan,” “instant forgiveness,” or “we can erase your debt,” it’s likely a scam. No one can guarantee federal loan forgiveness except the government.

🚩 3. Pressure to act immediately

Scammers use urgency: “Limited time offer!” or “Apply today or miss out.” Real government programs don’t work like that.

🚩 4. Requests for your FSA ID or password

Never share your Federal Student Aid login (username/password). Scammers can steal your identity or take control of your loans.

🚩 5. They pretend to be the government

Look out for fake logos, websites, or emails. The official government site ends in “.gov” (e.g., studentaid.gov).

🚩 6. Unprofessional communication

Misspelled words, generic emails, unclear terms, or no physical address can indicate fraud.

How to Stay Safe

✔ Always apply for U.S. federal loans at: studentaid.gov
✔ Contact your loan servicer directly for repayment help—don’t use a third party you don’t know.
✔ Research any private lender. Check reviews and their physical address.
✔ Never share personal or banking information unless you are sure who you’re dealing with.

If you suspect a scam

• Do not pay or give info
• Report the scam to:
  • Federal Trade Commission (FTC): reportfraud.ftc.gov
  • Your federal loan servicer
  • State Attorney General’s office

Legitimate help vs. Scams