The loan-forgiveness scam

Scammers pretend to be loan-forgiveness programs or government agencies and charge upfront fees to make your debt disappear—but the debt remains and your money is gone.

Documented by the FTC & FBI IC3 · reviewed 2026-07-11T18:14:57.874Z

How it works

You receive an unsolicited call, email, or text claiming you qualify for a special loan-forgiveness or debt-relief program. The caller creates urgency, saying the offer expires soon or that you must act immediately, and asks you to pay an upfront fee or provide financial information to 'process' your relief.

What it can look like

You get a call saying you've been selected for a federal student-loan forgiveness program. The caller explains that for a one-time setup fee of a few hundred dollars, they'll enroll you and handle all the paperwork. They pressure you to pay today or lose the opportunity.

How it unfolds

Scams like this follow a pattern. Knowing the arc helps you notice where you are — and step away before the ask.

You receive a call, email, or text out of the blue offering to help you get your student loans forgiven or reduced. The caller sounds official and cites your loan account details (which may be real public information) to build credibility.

You're told you qualify for a special program, but only if you act quickly. There's urgency: the offer expires soon, or spots are limited. They ask you to verify personal details and may request you log into your loan account to 'check eligibility.'

Before any paperwork is processed, they ask you to pay an upfront fee—for application, processing, or enrollment in the forgiveness program. They may say this fee is refundable or required by law.

You've paid money, shared account login details, or personal information, and the promised relief never arrives. Calls go unanswered, emails bounce, or the contact details turn out to be fake. Stop here: do not send more money, do not share additional information, and do not give them remote access to your devices.

Red flags

Unsolicited contact offering loan forgiveness you never applied for
Demand for upfront payment before any debt relief is delivered
Caller claims to represent a government agency but uses a private company name or is vague about which agency
Pressure to act immediately or lose the offer
Request for personal financial details (account numbers, Social Security number) over the phone

What to do

Hang up immediately and verify contact info independently by calling the official agency or checking their official website directly (never use a number the caller gave you).
Know that legitimate government debt-relief programs never charge upfront fees and will not call you unsolicited.
Report the contact to the Federal Trade Commission at reportfraud.ftc.gov.

If it already happened

Acting quickly can limit the damage. You are not alone, and it is not your fault.

Stop all contact immediately. Do not answer further calls or emails from this person or organization, and do not send any additional money or information.
Contact your bank or credit card company right away to report the transaction and ask if the charge can be reversed or disputed. Keep records of all payment confirmations, emails, and phone numbers.
Change the password on your loan servicer account and any other accounts where you used similar credentials. If you shared Social Security number or financial details, monitor your credit reports and consider placing a fraud alert with credit bureaus.
Report the scam at reportfraud.ftc.gov, and file a complaint with your state's Attorney General office. Keep copies of all communications and transaction records to share with authorities.

Sources

Guidance on this page draws on public, authoritative consumer-protection resources (verified live 2026-07-10). Documented by the FTC & FBI IC3 · reviewed 2026-07-11T18:14:57.874Z.

Spotted this or lost money? Report it at reportfraud.ftc.gov. This is general educational information, not legal or financial advice — and ScamVet never asks for your identity or account details.

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