TLDR
The Consumer Financial Protection Bureau (CFPB) received a record 22,900 student loan complaints in 2025, a 36% increase year-over-year. ScamVerify™ tracks scam phone number patterns across 4 million+ FTC complaints, and student loan forgiveness calls have become one of the fastest-growing robocall categories. Scammers impersonate the Department of Education, demand $500 to $1,500 in illegal upfront fees, and steal Federal Student Aid (FSA) login credentials from 44 million borrowers navigating repayment changes.
Why Student Loan Scams Are Surging Now
Three converging factors have created the perfect environment for student loan phone scams:
- Repayment restarts: After the pandemic-era payment pause ended, millions of borrowers re-entered repayment confused about their options, new income-driven plans, and changed servicers.
- Policy uncertainty: Ongoing legal challenges to broad forgiveness programs, changes to SAVE and other IDR plans, and shifting eligibility rules create confusion that scammers exploit.
- Servicer transitions: Borrowers have been transferred between loan servicers (MOHELA, Nelnet, Aidvantage, EdFinancial), often without clear communication, making it easier for scammers to impersonate "your new servicer."
The CFPB's record 22,900 complaints represent only reported cases. The actual number of scam attempts is likely many times higher, as most robocall recipients do not file complaints.
How the Scam Works
The Call
A borrower receives a phone call, often with caller ID showing "Department of Education," "Federal Student Aid," or a Washington, D.C. area code (202). The caller claims to be from the Department of Education, a "government-approved" loan servicer, or a "student loan forgiveness center."
The Pitch
The scammer follows a script designed to create urgency:
- "You qualify for immediate loan forgiveness under a new federal program"
- "Your application deadline is in 48 hours"
- "We can reduce your monthly payment to $0"
- "The Biden/Trump forgiveness program is expiring and you need to apply now"
- "Your loan servicer referred you to us for special processing"
The Ask
The scammer requests one or more of the following:
| What They Want | Why It Is Dangerous |
|---|---|
| Upfront fee ($500-$1,500) | Illegal. Real servicers never charge processing fees. |
| FSA login credentials | Gives access to change repayment plans, contact info, and bank details |
| Social Security number | Identity theft |
| Bank account information | Direct debit authorization for recurring charges |
| Power of attorney | Legal authority to act on your behalf |
The Aftermath
After paying the fee, victims typically experience one of three outcomes:
- Nothing happens. The scammer disappears with the fee.
- The scammer enrolls them in a free program they could have accessed themselves, then charges monthly "maintenance fees" of $30 to $99.
- The scammer changes their repayment plan to forbearance or deferment, temporarily stopping payments but accruing interest, while collecting the "management fee."
Red Flags vs. Legitimate Contact
| Indicator | Scam Call | Real Servicer |
|---|---|---|
| Upfront fees | Demands $500-$1,500 | Never charges processing fees |
| Urgency | "Deadline in 48 hours" | Provides reasonable timelines |
| How they found you | Cold call or robocall | You initiated contact or have an existing account |
| Caller ID | Spoofed government number | Your servicer's known number |
| Credentials request | Asks for FSA username and password | Directs you to log in yourself at studentaid.gov |
| Guarantee | "100% forgiveness guaranteed" | Explains eligibility requirements honestly |
| Communication | Calls and texts repeatedly | Sends official mail and secure messages |
| Verification | Cannot verify through official channels | Listed on studentaid.gov servicer directory |
The Numbers Behind the Scam
| Metric | Figure |
|---|---|
| CFPB complaints (2025) | 22,900 (record) |
| Year-over-year increase | 36% |
| Total federal student loan borrowers | 44 million |
| Outstanding student loan debt | $1.77 trillion |
| Average illegal upfront fee | $500-$1,500 |
| FTC refunds from student loan scam enforcement | $35.5 million (2024) |
| States with AG enforcement actions | 23 |
As we detailed in our analysis of debt reduction robocalls, debt-related scam calls are consistently the most common robocall category in FTC complaint data. Student loan scams follow the same playbook, substituting "loan forgiveness" for "debt reduction."
How Real Student Loan Help Actually Works
Official Federal Resources
- studentaid.gov is the only official federal student aid website. All account management, repayment plan changes, and forgiveness applications are free.
- 1-800-4-FED-AID (1-800-433-3243) is the only official Federal Student Aid phone number.
- Your loan servicer (MOHELA, Nelnet, Aidvantage, EdFinancial, or others) can be identified on your studentaid.gov dashboard.
Free Forgiveness Programs
| Program | Eligibility | Application |
|---|---|---|
| Public Service Loan Forgiveness (PSLF) | 10 years of qualifying payments + public service employment | Free at studentaid.gov |
| Income-Driven Repayment forgiveness | 20-25 years of payments on IDR plan | Automatic after qualifying period |
| Teacher Loan Forgiveness | 5 years of teaching in low-income schools | Free application through servicer |
| Total and Permanent Disability | Documented disability | Free at disabilitydischarge.com |
| Borrower Defense to Repayment | School engaged in fraud | Free application at studentaid.gov |
Every legitimate forgiveness program is free to apply for. No third party can expedite or guarantee approval.
Legitimate Help
If you need assistance navigating repayment options:
- Contact your servicer directly (found on studentaid.gov)
- Call the Federal Student Aid Information Center at 1-800-433-3243
- Seek help from a nonprofit credit counselor accredited by the NFCC (nfcc.org)
- Contact your state attorney general's office for free consumer assistance
How to Protect Yourself
- Never pay upfront fees for student loan help. It is illegal under the FTC's Telemarketing Sales Rule for companies to charge fees before providing debt relief services.
- Never share your FSA login. No legitimate servicer or government representative will ask for your username and password.
- Hang up on unsolicited calls about student loan forgiveness. Call your servicer directly using the number on your billing statement or studentaid.gov.
- Register on the Do Not Call Registry at donotcall.gov. While it will not stop all scam calls, it makes legitimate telemarketing calls illegal.
- Check your servicer on studentaid.gov before responding to any communication.
- Look up suspicious phone numbers using ScamVerify's phone lookup to check if other borrowers have reported the number.
For detailed guidance if you have already engaged with a scam caller, read our guide on what to do if you answered a scam call.
What to Do If You Paid a Student Loan Scammer
- Contact your bank or credit card company immediately to dispute the charge or stop recurring payments
- Change your FSA password at studentaid.gov if you shared your credentials
- Check your loan account on studentaid.gov for unauthorized changes to your repayment plan or contact information
- File a complaint with the CFPB at consumerfinance.gov/complaint
- Report to the FTC at ReportFraud.ftc.gov
- Contact your state attorney general's consumer protection division
- Place a fraud alert on your credit reports if you shared your Social Security number
FAQ
Can a company guarantee student loan forgiveness?
No. No company, regardless of what they charge, can guarantee forgiveness. Eligibility is determined by federal criteria (employment type, payment history, income, disability status). Companies that guarantee approval are misrepresenting what they can do, which is itself a violation of FTC rules.
My caller ID showed "Department of Education." Was it real?
Almost certainly not. Caller ID spoofing is trivial and widely used by scammers. The real Department of Education rarely makes outbound calls to borrowers. If you receive a call claiming to be from the Department of Education, hang up and call Federal Student Aid directly at 1-800-433-3243.
I signed a power of attorney with a student loan company. What do I do?
Revoke it immediately in writing. Send a certified letter to the company stating that you revoke the power of attorney effective immediately. Also contact your loan servicer and FSA to inform them that any authorization previously granted is revoked. A legitimate student loan assistance organization should never require power of attorney.
Are student loan forgiveness texts also scams?
Yes. The same scam operates via text message, email, and social media in addition to phone calls. The FTC has reported a significant increase in student loan scam texts that mimic government communications. The same red flags apply across all channels: upfront fees, urgency, and requests for FSA credentials.
How do scammers get my phone number and know I have student loans?
Scammer operations use data broker lists, leaked databases, and public records. They also buy leads from websites that offer "free student loan calculators" or "forgiveness eligibility checks" that collect personal information. Some operations use robocalls to dial millions of numbers indiscriminately, knowing that 44 million Americans have student loans.
