Student-loan forgiveness or repayment help for a fee
After federal student-loan repayment rules changed, scammers began offering quick forgiveness or special payment plans for a fee. Federal student loan programs do not charge you for that kind of help, and no private company can guarantee that your debt will be wiped out.
How it works
You may get an unsolicited call, email, or online ad that promises complete loan forgiveness or a fast path out of debt. The pitch often creates urgency and may claim a tie to the federal government. Some companies ask for your Federal Student Aid login, which can let them change your account. Others want a power of attorney or an upfront fee, which New York law does not allow for these services. New York's attorney general warned about this in September 2026 as borrowers looked for new payment options after program changes. You can get free information from official student-aid sources and vetted assistance programs.
Red flags
- An unsolicited offer promises complete or very fast loan forgiveness.
- The company wants an upfront fee or your FSA login.
- They ask you to sign a power of attorney for someone you do not know.
- They claim you must act within a very short time to keep relief.
What to do
- Do not pay an upfront fee or give anyone your Federal Student Aid login.
- Use official or vetted sources for repayment information, and remember that federal programs do not charge for enrollment help.
- Report illegal upfront fees or fake government ties to your state attorney general and at reportfraud.ftc.gov.
- You can also report the contact at ic3.gov.
Where to report it
- reportfraud.ftc.gov — the FTC's report form.
- ic3.gov — the FBI's Internet Crime Complaint Center.