How to spot student loan forgiveness scams and protect yourself | Earnest

How to spot student loan forgiveness scams (and what to do if you’ve been targeted)

By Willa Tellekson-Flash | Published on February 24, 2026

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TL;DR

Student loan forgiveness scams are on the rise—and with good reason. As repayment resumes and new federal forgiveness programs gain attention, confusion is growing. Scammers are seizing the moment to trick borrowers with fake promises, phony fees, and misleading messages.

The good news? You don’t have to fall for it. With a little knowledge and the right tools, you can recognize scams early and protect your financial future.

Why student loan forgiveness scams are increasing

Since the return of federal student loan payments in late 2023, reports of scams have surged. These schemes often prey on confusion around new programs like the SAVE Plan or updates to Public Service Loan Forgiveness (PSLF). Borrowers overwhelmed by repayment choices are especially vulnerable.

Scammers use official-sounding language and time-sensitive pressure to trick you into acting fast—often before you’ve had time to check the facts.

Common student loan forgiveness scams to watch for

Understanding common scam tactics can help you spot—and stop—a scam before it affects you:

These scams often start with a robocall, email, or social media message, and escalate by asking you to act fast or provide login information.

Is it safe to share personal information with forgiveness companies?

You should only share sensitive details when you’ve initiated contact through official channels, like your loan servicer’s website or a trusted lender. Scammers may ask for Social Security numbers, bank info, or login credentials—none of which legitimate forgiveness programs will ever request over the phone, by email, or just to “provide information” about their services.

Do I ever have to pay for federal student loan forgiveness?

The U.S. Department of Education will never charge you for student loan forgiveness or to answer questions about your account. If someone asks for a processing fee or upfront fee to help you get forgiveness or access federal student aid, that’s a red flag.

You can access a wealth of information about help available to you at StudentAid.gov and by calling your federal loan servicer directly. Earnest’s Client Happiness Team can also help you find resources to assess your options if you give us a call—and we’ll never charge you for that advice, either.

Can a company guarantee immediate forgiveness of my loans?

No. Legitimate forgiveness programs take time and have eligibility requirements. Any promise to erase your debt instantly—especially if it comes with a request for payment or personal details—is a scam.

Do official seals and government logos mean a site is legitimate?

Not always. Scammers often copy badges like the "Better Business Bureau" seal or government logos to build false trust. Because these symbols inspire confidence, many people assume a site or message is legitimate without looking deeper. In reality, it takes little effort for scammers to make emails, letters, or websites appear official. To protect yourself, always verify by checking third-party reviews, references, or the Department of Education’s website before doing business with any debt relief company.

How can I tell if someone is impersonating the Department of Education?

Scammers often pose as the Department of Education using fake names and robocalls. In one two-week period,they placed 350,000 calls about "loan forgiveness," according to CBS News. These calls may claim to cancel your loans or lower your payments—sometimes using names like the "United Services Student Loan Department," which can sound official.

Legitimate communications are limited to specific channels: emails from noreply@studentaid.gov, noreply@debtrelief.studentaid.gov, or ed.gov@public.govdelivery.com, and text messages only from 227722 or 51592. Anything else should be treated with caution.

Federal Student Aid or your loan servicer may contact you about updates, such as a one-time adjustment to qualifying payments, but they’ll typically notify you in writing through your account, email, or physical mail—not through unsolicited robocalls.

Should I ever sign a power of attorney for debt relief?

No. You don’t need to give a third party the legal right to manage your loans in order to apply for repayment plans or forgiveness. If asked, it’s a clear warning sign of a scam.

If a company sends you a contract asking for power of attorney, that’s a clear sign of a debt relief scam. You don’t need someone else to act on your behalf to enroll in income-driven repayment plans or seek Public Service Loan Forgiveness, or any other kind of debt forgiveness for that matter.

Granting someone else the power to make financial decisions for you can open you up to more debt if fraudulent loans are taken out in your name. It can be harder to clean up the mess if you legally gave them that right.

What to do if you think you’ve been scammed

Think you may have shared information or paid someone you now suspect is a scammer? Don’t worry—there are clear steps you can take to protect yourself and limit the damage.

  1. Stop contact immediately. Don’t reply to messages, send money, or share more personal details.
  2. Save all evidence. Keep emails, texts, contracts, or call logs. These records help authorities investigate.
  3. Report the scam. File complaints with the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and your state attorney general.
  4. Alert your loan servicer. Contact your student loan servicer and let them know what happened. They can secure your account and guide you on next steps.
  5. Check your financial accounts. Review bank and credit card activity for suspicious charges. Report anything unusual to your financial institution right away.
  6. Review your credit reports. Request free reports from Equifax, Experian, and TransUnion. If you spot accounts you don’t recognize, consider a fraud alert or credit freeze.
  7. Learn more about trusted options. Familiarize yourself with legitimate forgiveness and repayment programs at StudentAid.gov. Knowing the facts makes it easier to avoid scams in the future.

What are safe alternatives to student loan forgiveness scams?

Student loan forgiveness isn’t the only way to get debt relief. Here are some other ways you can make some room in your budget:

Look into income-driven repayment plans

If you have federal student loans, you may be eligible for income-driven repayment plans that can lower your monthly payments. There are four different types, including the new SAVE plan. These plans calculate your payment based on your income, which can be a lower percentage of your income compared to a standard repayment plan.

Consider student loan consolidation

If you have federal student loans, consolidating them into one loan can simplify repayment, making it easier to stay on top of monthly bills. When you consolidate your loans, you can also choose a new repayment term. Choosing a longer term will lower your monthly payments, giving you breathing room to afford other expenses. On the other hand, it’s important to know that extending your repayment term means likely paying more in interest over the life of the loan.

Refinance your loans

Refinancing allows you to take out a new private loan to pay off your old private and/or federal student loans. This new loan will come with new terms and rates, and if you have a better credit score than you did when you took out your original loans, you may qualify for a lower interest rate. This can help you save a significant amount of money over the life of the loan.

Keep in mind that refinancing federal loans with a private lender, like Earnest, means giving up some federal protections, like income-driven repayment, certain forgiveness options, and in some cases, deferment and forbearance.

Request deferment or forbearance

Deferment and forbearance are both pauses in your student loan payments granted for special circumstances. In forbearance, the interest on your loan will accrue. In deferment, it may not. Both of these options are offered by the federal government and are not long-term solutions to saving money on student loans. However, they can offer some temporary relief in times of hardship.

Frequently asked questions

Can I be charged a fee for federal student loan forgiveness?

No. The U.S. Department of Education never charges for forgiveness or for help with your account. Any request for payment is a red flag.

What email addresses are legitimate for student loan forgiveness updates?

Only these:

Texts are only sent from 227722 or 51592. Anything else should be treated with caution.

What should I do if I already gave a scammer my information?

Stop contact immediately, report the scam to the FTC and CFPB, notify your loan servicer, and monitor your financial accounts and credit reports for unusual activity.

Are there legitimate ways to lower my student loan payments?

Yes. Options include income-driven repayment plans, federal loan consolidation, refinancing, and short-term relief like deferment or forbearance. You can explore these options at StudentAid.gov or with trusted lenders like Earnest.

About the Author

Willa Tellekson-Flash

Willa Tellekson-Flash is a freelance writer and product marketer specializing in finance and technology. With 10 years of experience, she focuses on making complex personal finance topics accessible and empowering for all audiences. When she’s not writing, you'll likely find her training for her next marathon.