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Are Student Loan Forgiveness Program Calls Real?

Student loan debt is a serious financial concern for over 40 million Americans (roughly 1 in 8), with the average person owing around $38,000. If you’re in this group, you’ve almost definitely gotten a call telling you that you may be eligible for a new student loan forgiveness program. But are these student loan forgiveness program calls real or are they a scam? Are there legitimate options for relief? We’re looking at how to spot scams and what you need to know.

Three Signs A Student Loan Forgiveness Program Is a Scam

If it sounds too good to be true, it probably is, but here are three key ways to determine whether a student loan forgiveness program is a scam.

You Are Asked for Your FSA ID Password

Your FSA ID password is used to sign electronic documents, such as signing for loans or consolidating them, so it’s very important to never give this out. Anyone with this information can take action on your account, such as applying for new loans or filing for forbearance after telling you your loans have been forgiven. The Department of Education nor legitimate loan servicers will ever ask you for your FSA ID password.

They Charge Upfront Costs or Monthly Fees

Unless you are dealing with a reputable entity or law firm with good consumer feedback or reviews, you should never pay a fee for assistance in:

  • Filling out income-based repayment paperwork
  • Paperwork for legitimate student loan forgiveness programs
  • Collecting loan payments
  • Switching to a new plan

They Offer Immediate Forgiveness

There are no student loan forgiveness programs that happen immediately or are easily accomplished nor are there any programs that offer total forgiveness on your loan.

What to Do If You’re a Victim of a Student Loan Forgiveness Scam

If you have already made a payment or shared personal information with a company you feel is committing a student loan forgiveness program scam, take these steps immediately:

  • Freeze your credit to prevent the scammer from using personal information to open new credit cards or other accounts.
  • Change your FSA ID.
  • Contact your bank or credit card company to stop any current payments to the scammer.
  • Contact your loan servicer to stop any authorization agreement they have and verify they haven’t taken unwanted action.
  • File a complaint with the FTC.

Legitimate Student Loan Forgiveness Programs

There are legitimate student loan forgiveness programs that you may be eligible for:

  • Teacher Loan Forgiveness can erase up to $17,500 in student loans for teachers with five years of consecutive, full-time employment in low-income schools.
  • Public Service Loan Forgiveness can erase federal student loans after 10 years of qualifying payments when you work for a non-profit organization, school, church, or any government organization at any level.

There are also state programs for student loan forgiveness, and many employers offer programs to pay off a portion of their loans.

Schedule a Free Consultation with a Student Loan Lawyer Today

If you are struggling with student loans, credit cards, and other debts, we can help you find the right options to lower monthly payments and achieve financial freedom. To learn more about your options, schedule a free consultation with a Fort Lauderdale bankruptcy or student loan lawyer today by calling (954) 932-7804 or filling out the form below to get started.

Written By:

Attorney Robert Stiberman

Robert is an experienced bankruptcy attorney adept at handling Chapter 7, 13, and 11 filings, with more than 15 years of experience in bankruptcy cases. Robert represents clients in both consumer and business bankruptcy ... Read More

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