SCAM LIBRARY · IMPERSONATION

The loan-forgiveness scam

Scammers pretend to work for a loan-forgiveness program and pressure you to pay an upfront fee to qualify for debt relief you don't actually need.

Documented by the FTC & FBI IC3 · reviewed 2026-07-06

How it works

You receive an unsolicited call, text, or email claiming you qualify for a government or private loan-forgiveness program—often targeting federal student loans or credit card debt. The caller creates urgency by saying the offer is time-limited, then asks you to pay a fee upfront (sometimes hundreds of dollars) to get started. They may use official-sounding language or fake documents to seem legitimate.

Red flags

• Unsolicited contact offering loan forgiveness you didn't apply for
• Demand for payment before any service is delivered or confirmed
• Pressure to act quickly or miss a deadline
• Caller cannot clearly explain what program they represent or asks vague questions about your loans

What to do

• Hang up and independently verify by contacting your actual lender or visiting official government websites directly (do not use contact info from the unsolicited message)
• Never pay any upfront fee for legitimate loan-forgiveness help; real programs do not work this way
• Report the contact to the Federal Trade Commission at reportfraud.ftc.gov