The Biden Administration recently announced that the federal government will cancel up to  $20,000 of Federal student loans per person. Millions of Americans will be recipients of the  student loan debt relief; unfortunately, this creates an excellent opportunity for scammers.

As student loan holders navigate the new forgiveness program, con artists will undoubtedly be  there to take advantage of any confusion. It happens with any big government initiative,  including the COVID-19 vaccine roll-out, eviction moratorium and pandemic relief programs.  Always be sure to do your research before sharing any personal information.  

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, as well as how student loan relief impacts you. Go  straight to official government websites, such as and, for  information. 

● 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. In general, 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 who is offering you student loan relief, do  some 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, report the suspicious calls or messages. Then, find the  official contact information (look on and or other official sites)  and call to verify. 

● 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.

Related links

 See BBB’s recent warning about student loan forgiveness scams.


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