Getting Calls About Instant Student Loan Relief? Red Flags Every Borrower Should Know
August 4, 2025
5 min read
If you’ve picked up your phone lately only to hear a cheerful voice offering “immediate student loan forgiveness” or promising to “wipe out your balance before the deadline,” you’re not alone. These calls are everywhere. And they’re not just annoying—they could be dangerous.
With the federal student loan landscape shifting more often than a college student changes majors, scammers are seizing the moment. They're banking on confusion, desperation, and the hope that someone—anyone—can make those five-figure balances disappear overnight.
Here's the thing: real loan relief does exist, but so do countless scams that look just close enough to fool even the most cautious borrower.
Why These Student Loan Relief Scams Are Spiking Now
Federal student loan payments resumed in October 2023 after more than three years of pandemic-related pauses. During that break, we saw lawsuits, legislative back-and-forth, changing repayment plans, the introduction of SAVE, and widespread talk of forgiveness.
For millions of borrowers, the rules around repayment are still foggy. And where there’s confusion, there are scam artists with dialers.
These fraudsters are playing on urgency, often name-dropping things like:
- “The new Biden forgiveness program”
- “The student loan deadline that’s about to expire”
- “You’re eligible for forgiveness under the CARES Act”
Some of these phrases are rooted in truth—but twisted enough to mislead.
According to the Federal Trade Commission (FTC), student loan scams consistently rank among the top fraud reports, with thousands of complaints filed every year. And those are just the ones we know about.
The Real Problem With Scams: It’s Not Just About Losing Money
Yes, some borrowers lose thousands of dollars to these operations. But even more dangerous is the false sense of security they offer.
Many of these scam services stop borrowers from taking the real, free steps they need to manage their loans—like enrolling in income-driven repayment plans or applying for legitimate forgiveness options. By the time people realize they’ve been duped, months or even years may have passed, and real consequences (like delinquency or wage garnishment) can follow.
It’s not just about money. It’s about time, credit, and trust—all of which are much harder to earn back.
7 Subtle Red Flags Every Borrower Should Know
Most articles will tell you to avoid anyone who asks for money upfront. And yes, that’s rule number one. But scammers are getting slicker. Here are a few lesser-known warning signs that could save you or someone you know from a major financial mess:
1. They “Guarantee” Forgiveness
Even with federal forgiveness programs like Public Service Loan Forgiveness (PSLF) or the SAVE Plan, nothing is guaranteed without meeting specific criteria. Real loan servicers don’t make promises—they offer options.
2. They Offer to File the “Paperwork” for You—for a Fee
Applying for federal relief is always free at StudentAid.gov. Some scammers charge hundreds of dollars to fill out basic forms—then ghost you or file incorrect info that jeopardizes your repayment status.
3. They Rush You to “Act Before the Deadline”
Deadlines do exist (like PSLF waivers or recertification dates), but they’re announced publicly and never require a third party to act on your behalf. If it’s truly urgent, you’ll see it on the Department of Education’s site—not just in a cold call.
4. They Claim They’re “Working With the Department of Education”
Here’s the truth: no private company is “partnered” with the Department of Ed to offer special access. Your real loan servicer is listed on your StudentAid.gov dashboard. If it’s not there, it’s not real.
5. They Ask You to Revoke Your FSA Login Access
Some scammers will ask you to sign a document that gives them power of attorney or access to your FSA account. This is a massive red flag. Your login is as sensitive as your bank account—guard it accordingly.
6. They Change the Caller ID to Look Local or Familiar
Scammers are using spoofing technology to make it look like they’re calling from your area code—or even from your loan servicer. Don’t trust the number alone. Always verify the caller before giving out any information.
7. They Use “Scripted Helpfulness” But Get Evasive on Details
You’ll hear lots of phrases like “We’re here to help,” “This is your last chance,” or “We’ve helped thousands of borrowers just like you.” But ask them for a mailing address, a website, or an official email—and they get weirdly quiet.
What to Do If You Think You’ve Been Targeted
1. Hang Up—and Report the Call
If something feels off, trust your instincts. You can report scams to:
- The FTC at ReportFraud.ftc.gov
- The Consumer Financial Protection Bureau (CFPB)
- Your state’s Attorney General’s office
2. Change Your FSA Password Immediately
If you’ve shared your login with anyone suspicious, reset it ASAP at StudentAid.gov. Monitor your account for changes.
3. Contact Your Loan Servicer Directly
If you’re unsure about a call or email, call your official loan servicer directly using the number on your billing statement or StudentAid.gov dashboard. Never use a number provided by a third party.
4. Monitor Your Credit Report
If you shared sensitive data like your Social Security number or banking info, check your credit report at AnnualCreditReport.com and place a fraud alert if needed.
So What Are Your Legitimate Relief Options?
Good news: if you’re feeling buried by student loans, there are real tools that don’t require phone calls from strangers.
Income-Driven Repayment (IDR)
Plans like the new SAVE Plan can reduce your monthly payment to as low as $0, depending on income and family size. After 10–25 years of payments, the rest of your balance may be forgiven.
Public Service Loan Forgiveness (PSLF)
If you work in government or for a nonprofit and make 120 qualifying payments, you may be eligible for full forgiveness. This program was overhauled in recent years to fix past errors—so now’s a good time to review your status.
Fresh Start for Defaulted Loans
If your loans were in default before the pandemic, the Fresh Start program may help you get back into good standing without penalties.
Loan Discharge Options
There are also legitimate pathways to discharge for borrowers who qualify due to disability, school closure, or fraud by their school.
All of these programs are available free through StudentAid.gov or your official loan servicer.
Don’t Let a Scam Cost You Your Relief
Student loans are already stressful. You shouldn’t have to dodge scams just to find real solutions. But with a little knowledge—and a strong spam filter—you can protect yourself, your credit, and your peace of mind.
The golden rule? If it sounds too good to be true, it probably is—unless it came from StudentAid.gov.
And if you’re ever in doubt, don’t ignore that gut feeling. Hang up. Check the facts. Then take action the smart way: free, official, and fully in your control.
