Caller pretends to be the Department of Education and charges fees to forgive your student loans
Callers impersonate the U.S. Department of Education and promise to forgive student loans or lower payments — for an illegal upfront fee. One operation stole $45.9M before the FTC shut it down in 2026. Real forgiveness programs are always free.
Also known as: student loan forgiveness scam, fake Department of Education call, student loan debt relief scam, fake PSLF enrollment scam
Already happened to you? Do this in the next few minutes
- 1 Call your bank or card's fraud line right now. Use the number on the back of your card — not any number from the message or caller. Ask them to stop or reverse the payment and freeze the account.
- 2 If you paid by gift card, wire, or an app (Zelle, Venmo, Cash App): contact that company immediately and report it as fraud. Acting fast sometimes recovers the money.
- 3 Report to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov. The sooner, the better.
What to do right now
- 1 Hang up on anyone who calls offering to forgive or reduce your student loans for a fee — no legitimate program charges upfront
- 2 Apply for real federal forgiveness programs (PSLF, income-driven repayment forgiveness, teacher loan forgiveness) for free at studentaid.gov
- 3 Contact your loan servicer directly using the number on your billing statement — they can enroll you in income-driven repayment and forgiveness programs at no charge
- 4 Never share your FSA ID, studentaid.gov password, or loan servicer login with anyone who contacts you; these give full access to your federal loan account
- 5 If you paid a company upfront for student loan relief, report it to the FTC — you may be eligible to submit a claim for a partial refund from FTC enforcement actions
- 6 Report to the FTC at https://reportfraud.ftc.gov and the FBI's IC3 at https://www.ic3.gov.
Red flags
- ⚠ Caller claims to be from or affiliated with the Department of Education and offers to enroll you in a forgiveness program — the Department does not proactively call borrowers to offer forgiveness
- ⚠ They charge any fee before your loans are actually reduced or forgiven — charging upfront fees for debt relief is illegal under FTC rules
- ⚠ They guarantee your loans will be forgiven by a specific date or reduced to a specific amount — no one can guarantee federal forgiveness outcomes
- ⚠ They ask for your FSA ID, studentaid.gov password, or loan servicer login — giving these away hands over full control of your federal loan account
- ⚠ They tell you to stop making payments or stop contacting your servicer while they 'work on' your case
- ⚠ The company has a name that sounds governmental (e.g. 'Federal Student Aid Center,' 'National Student Loan Relief') but has no .gov website
Known variants
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Seasonal back-to-school variant: victim receives an email, text, or DM claiming they have been selected for a scholarship or federal grant they never applied for. A processing fee is required to release the award. Scammers may also ask for the student's FSA ID to 'complete enrollment,' then redirect real aid.
Last seen: 8/15/2026
Sources
- FTC — FTC Stops Operation Targeting Student Loan Debt Relief Seekers (Apr 2026)
- Forbes — Accused Student Loan Scammer Hit With $46 Million Judgment and Lifetime Industry Ban (Jul 21, 2026)
- FTC — Student Loan and Education Scams (ongoing)
- CuraDebt — FTC Student Loan Forgiveness Scam Order Bans Operator (2026)
- IRS / FCC — Back-to-school fake scholarship and grant scams targeting students and parents (Jul–Aug 2026)