Skip to main content

Cookies on BBB.org

We use cookies to give users the best content and online experience. By clicking “Accept All Cookies”, you agree to allow us to use all cookies. Visit our Privacy Policy to learn more.

Cookie Preferences

Many websites use cookies or similar tools to store information on your browser or device. We use cookies on BBB websites to remember your preferences, improve website performance and enhance user experience, and to recommend content we believe will be most relevant to you. Most cookies collect anonymous information such as how users arrive at and use the website. Some cookies are necessary to allow the website to function properly, but you may choose to not allow other types of cookies below.

Necessary Cookies

What are necessary cookies?
These cookies are necessary for the site to function and cannot be switched off in our systems. They are usually only set in response to actions made by you that amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not work. These cookies do not store any personally identifiable information.

Necessary cookies must always be enabled.

Functional Cookies

What are functional cookies?
These cookies enable the site to provide enhanced functionality and personalization. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not function properly.

Performance Cookies

What are performance cookies?
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.

Marketing Cookies

What are marketing cookies?
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant content on other sites. They do not store personal information directly, but are based on uniquely identifying your browser or device. If you do not allow these cookies, you will experience less targeted advertising.
      Country
          Country
          Latest News

          BBB Scam Alert: Student loan pause is ending. Here’s how to avoid scams

          By Better Business Bureau. July 14, 2023.
          Graduation mortar board cap on one hundred dollar bills concept for the cost of a college and university education

          (Getty Images)

          After more than three years of relief, the payment pause on student loans is coming to an end. The U.S. Department of Education recently announced that student loan interest will resume September 1, 2023, and payments will be due starting in October.

          This student loan news affects millions of Americans, which creates an excellent opportunity for scammers. In fact, BBB has already received multiple reports of scams related to student loan repayment citing “new 2023 guidelines.” Get to know the signs of a scam and always be sure to do your research before sharing any personal information.   

          How the scam works

          You receive an email, letter, or phone call from someone claiming you are eligible for “student loan consolidation,” “payment reduction program,” or a similar service. This new benefit is allegedly part of “the new 2023 guidelines,” and the scammer may even claim to represent the Federal Student Aid (FSA) department.

          If you respond, the scammer will ask you for personal information to “confirm your identity” or to “check your eligibility.” This information might include your Social Security number, name and address, and even your FSA.gov login information.

          One student loan holder reported the following experience: “I received an email stating that the Student Loan Department has been trying to contact me to tell me all of my student loans are eligible for forgiveness under the new 2023 guidelines. They wanted me to call the number between 11-7pm in Albuquerque, New Mexico and give them information in order to process forgiveness.” At this point the loan holder reached out their student loan company and learned that the email was scam.

          After “verifying your identity” the scammer will offer you an enticing plan to reduce your loan repayment. If you agree, you may end up making payments a third-party in vain for months or even years. None of your payments will go towards your student loan. And even if you don’t make a payment, sharing personal information puts you at risk for identity theft.  

          Tips to avoid student loan forgiveness scams

          • Get to know the terms of your student loan and the relief program before acting. Always do your research before sharing personal information. Be sure to understand the ins and outs of your specific loan and how student loan terms impact you. You may have to research who your current loan servicer is since it may have changed. Reach out to them to explore all your repayment options and make sure your contact information is up to date. For information, go straight to official government websites, such as ED.gov and studentaid.gov.

          • Never pay money for a free government program. Scammers often trick victims into paying for free government programs – or they claim you can get additional benefits, faster benefits, etc., for a fee. A real government agency will not ask for an advanced processing fee. These are all red flags of a scam.

          • Be wary of out-of-the-blue calls, emails, or text messages claiming to be from the government. Generally, the government will not contact you using these methods unless you grant permission.

          • Watch out for phony government agencies or programs. If you speak to someone claiming to be a government representative offering you student loan relief, research before you agree to anything. Scammers often make up look-alike government websites that sound similar to legitimate agencies or programs.
          • Think something seems suspicious? Reach out to the agency directly. If you have any concerns about an alleged government representative's legitimacy, hang up the phone or stop emailing/texting. Then, find the official contact information (look on ED.gov and studentaid.gov or other official sites) and call to verify. Then, report suspicious calls or messages. 

          • Be careful, even if the information comes from a friend. Even if a close friend or family member you trust sent you the information regarding student loan relief, make sure the claims are real first. During the COVID-19 pandemic, BBB received many reports of hacked social media accounts being used to spread government impostor scams.

          For more information

          Read more on BBB.org about scams targeting recent college graduates and government impostors. Get further insight by reading BBB’s tips on loans and credit repair services

          If you’ve spotted a student loan forgiveness scam (whether or not you’ve lost money), report it to BBB.org/ScamTracker. Your report can help others avoid falling victim to scams.