Quick answer: Report student loan scams to Federal Student Aid at studentaid.gov/feedback-center, the FTC at ReportFraud.ftc.gov, and the CFPB at consumerfinance.gov/complaint. If a company charged you fees to access loan forgiveness or income-driven repayment programs — which are always free through your servicer — that’s illegal. Contact your loan servicer immediately to revoke any power of attorney or third-party access you may have granted.
Student loan scam companies exploit borrowers’ confusion about federal relief programs. They charge hundreds or thousands of dollars for services borrowers can do themselves for free — applying for income-driven repayment, Public Service Loan Forgiveness, or deferment. Some steal FSA login credentials to divert payments. The FTC has shut down dozens of these companies and returned millions to borrowers. Reporting is critical.
Types of Student Loan Scams
Debt relief companies charge upfront fees to enroll you in free federal programs (IDR, PSLF, deferment) you could apply for yourself at no cost through your servicer. Advance-fee forgiveness scams promise immediate or guaranteed loan cancellation for an upfront payment — no company can guarantee forgiveness. FSA account takeover schemes request your Federal Student Aid login to “manage” your account, then redirect payments or change contact info. Fake forgiveness programs claim you qualify for a special limited-time program requiring immediate enrollment and payment. Diploma mill-linked scams target graduates of shuttered schools, offering to file borrower defense claims for large fees — this process is free through the Department of Education.
Where to Report a Student Loan Scam
📄 Download Free Reporting Checklist
Get our step-by-step checklist as a quick reference guide
Get Your Free Checklist →| Situation | Agency | Contact |
|---|---|---|
| Student loan relief / forgiveness scam | Federal Student Aid | studentaid.gov/feedback-center |
| Illegal fees / deceptive practices | FTC | ReportFraud.ftc.gov |
| Loan servicer complaint | CFPB | consumerfinance.gov/complaint |
| FSA account / federal program fraud | Dept. of Education OIG | 1-800-MIS-USED (1-800-647-8733) | oig.ed.gov |
| State consumer fraud | State Attorney General | Search “[your state] attorney general student loan complaint” |
| Online fraud / wire transfer | FBI IC3 | IC3.gov |
How to Report a Student Loan Scam Step by Step
- Stop payments to the company immediately. Contact your bank to cancel recurring charges. If you set up automatic payments to a debt relief company, revoke the authorization. Do not send any additional money.
- Secure your FSA account. Log into studentaid.gov and change your password. Check that your contact email, address, and phone number are correct and haven’t been changed. Remove any third-party access the scammer may have obtained.
- Contact your loan servicer. Call your federal loan servicer (Mohela, Aidvantage, Nelnet, etc.) to confirm your account status, check that payments are being properly applied, and revoke any power of attorney or third-party authorization the company filed on your behalf.
- File with Federal Student Aid. Report at studentaid.gov/feedback-center. The Department of Education tracks scam companies targeting borrowers and can flag your account for protection.
- Report to the FTC. File at ReportFraud.ftc.gov with the company name, what was promised, fees paid, and outcome. The FTC has brought major enforcement actions against student loan debt relief companies and obtained full refunds for consumers.
- File with the CFPB. The CFPB supervises student loan servicers and has authority over companies providing student loan assistance services. File at consumerfinance.gov/complaint.
- Report to the Dept. of Education OIG. For fraud involving federal programs or your FSA account, file with the OIG at oig.ed.gov or call 1-800-647-8733. The OIG investigates criminal fraud against federal student aid programs.
- Dispute charges with your bank or card. If you paid by card, file a chargeback citing deceptive services. For bank transfers, contact your bank about a recall.
Free Federal Programs — Never Pay to Apply
Income-Driven Repayment (IDR): Apply free at studentaid.gov or through your servicer. Caps payments at 5–20% of discretionary income. No company can get you a better deal than applying directly.
Public Service Loan Forgiveness (PSLF): Free to apply via the PSLF Help Tool at studentaid.gov. Forgives remaining federal loan balance after 120 qualifying payments in public service.
Deferment and forbearance: Request free from your servicer. Any company charging you to apply for these programs is committing fraud.
Penalties for Student Loan Fraud
FTC enforcement: The FTC has obtained judgments exceeding $100 million against student loan relief scam companies, with full refunds to consumers.
CFPB enforcement: The CFPB has fined companies millions for deceptive student loan servicing practices.
Criminal charges: FSA fraud and wire fraud related to student loan scams carry up to 20 years federal imprisonment.
Frequently Asked Questions
For related guides see: How to Report a Fake Charity, How to Report an Online Scam, How to Report Identity Theft.
Independent resource — not affiliated with any U.S. government agency. Last reviewed: June 2026.
This guide is a supporting article in our pillar resource covering all scam types, every federal agency, and all 50 state contacts.
How to Report Any Scam: Complete U.S. Guide →Rules and complaint offices vary by state. Use our state lookup to find the correct reporting agency, phone number, and complaint portal.
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