Scam alert
Unsolicited Student Loan Forgiveness Pitch Asks for a Fee? Hang Up
Posted
New York and nationwide · ag.ny.gov · Arrives by a phone call, an email, a text, or an online ad
The short answer
A student-loan forgiveness pitch that asks for an upfront fee or your FSA login is a sign of a scam. Hang up if an unsolicited call, email, text, or ad promises fast forgiveness and asks for a fee, your Federal Student Aid login, or a power of attorney naming a stranger. Federal student-loan programs do not cost money to access, and the Department of Education and loan servicers never ask for FSA credentials. On September 2, 2026 New York Attorney General Letitia James warned that scammers are exploiting confusion about federal repayment-plan changes. Get information only at StudentAid.gov, typed yourself.
What is happening
On September 2, 2026, New York Attorney General Letitia James warned that fraudsters are using confusion around federal repayment-plan changes—including elimination of the SAVE payment plan and phase-outs of other income-based plans—to sell help that is not needed. Federal student-loan programs do not cost money; New York law bars upfront fees for many student-loan-related services, and violations should be reported to the Office of the Attorney General. Separately, the New Hampshire Attorney General and the FCC have warned that robocalls and robotexts about student-loan forgiveness centers, settlements, or full discharge often press for upfront payment or an FSA ID, and that applications at StudentAid.gov are free.
How to recognize it
- An unsolicited call, email, text, or ad promises complete loan forgiveness or debt elimination in a short time.
- The pitch asks for an upfront fee to apply, appeal, or enroll in a student-loan program.
- Someone asks for your Federal Student Aid identification or login credentials.
- You are pressured to sign a power of attorney naming a person you do not know.
- The message claims to be from a student loan forgiveness center or claims a settlement that fully discharges your loans.
What to do instead
- Do not pay an upfront fee and do not share your FSA ID, password, bank account, or credit-card number with an unsolicited contact.
- Type StudentAid.gov yourself into the browser address bar for repayment and relief information.
- Hang up on urgency claims that you must act within hours or days to keep relief.
- In New York, contact EDCAP at 888-614-5004 or report to the Office of the Attorney General at 1-800-771-7755. Nationwide, report at ReportFraud.ftc.gov.
- If you want to tell someone, the rule is: federal student-loan help does not require an upfront fee or your FSA login.
If it already happened
Responding to one of these is common and understandable. These steps are what people usually take next.
- Paying a fee or sharing a login under pressure is common. The pitch is built around confusion about repayment rules.
- Change your FSA password at StudentAid.gov right away if you shared credentials, and review your account settings.
- Contact your loan servicer on a number from StudentAid.gov—not a number from the pitch—and describe what happened.
- Report it to your state attorney general and at ReportFraud.ftc.gov. Keep any names, numbers, sites, or receipts.
Common questions
- They said federal loan programs changed and I have to pay them to stay enrolled. Is that real?
- No. New York's Attorney General warned that scammers exploit confusion about repayment-plan changes. Federal student-loan programs do not cost money to access. Use StudentAid.gov yourself.
- They asked for my FSA ID so they could help me apply. Should I give it?
- No. The Department of Education and your loan servicer will never ask you for your login credentials. Sharing them can let someone change your account settings and personal information.
- Is an upfront fee ever allowed for student-loan help in New York?
- New York's Attorney General says it is a violation of New York law to charge upfront fees for many student-loan-related services, and those violations should be reported to the OAG. Do not pay first.
Practice this safely
Practice refusing an upfront fee for student-loan forgiveness and typing StudentAid.gov yourself instead.
Every story is fictional. There is no timer, no score, and no real message, payment, or account.
Tell someone
Copy a short note you can paste into a text or email. It names the scam, the next step, and this page. Nothing is sent from this site.
Unsolicited Student Loan Forgiveness Pitch Asks for a Fee? Hang Up A student-loan forgiveness pitch that asks for an upfront fee or your FSA login is a sign of a scam. Hang up if an unsolicited call, email, text, or ad promises fast forgiveness and asks for a fee, your Federal Student Aid login, or a power of attorney naming a stranger. Federal student-loan programs do not cost money to access, and the Department of Education and loan servicers never ask for FSA credentials. On September 2, 2026 New York Attorney General Letitia James warned that scammers are exploiting confusion about federal repayment-plan changes. Get information only at StudentAid.gov, typed yourself. Read the full alert: https://endscamsproject.com/latest-scams/student-loan-forgiveness-upfront-fee-scam
Where this comes from
These links open the published sources in a new tab. The destination is shown before you open it.
- New York Attorney General: Warns New Yorkers about student loan scams (September 2, 2026) (opens in a new tab)
ag.ny.gov
- New Hampshire Department of Justice: AG and FCC warn of student loan debt scam robocalls and robotexts (June 30, 2023) (opens in a new tab)
doj.nh.gov
- Report fraud to the Federal Trade Commission (opens in a new tab)
ReportFraud.ftc.gov
The full guide on this
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This alert provides general educational information drawn from the sources above. It cannot determine whether a specific message you received is genuine, investigate an incident, or promise recovery or reimbursement.