New student loan rules come into effect in July
Americans with federal student loans could be affected by several changes coming next month. A new analysis also reveals that 3.5 million Americans will lose food stamps and SNAP benefits under President Trump’s “One, Big, Beautiful Bill.”
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- Scammers target student loan borrowers with unsolicited phone calls, emails, and text messages with false promises of debt forgiveness.
- Red flags of a scam include requests for upfront fees, guarantees of immediate approval, and pressure to act quickly.
- Never share your FSA ID, password, or other personal information with anyone who contacts you unexpectedly.
Student loan debt can feel overwhelming, so many borrowers are looking for relief. Scammers rely on that very urgency.
As the conversation about loan forgiveness continues, scammers offer promises of debt reduction or forgiveness. These offers may be provided to you via phone, email, text, or even social media messages. They may sound convincing, but many are designed to extort your money or steal your personal information.
Know the methods of fraud
Student loan forgiveness scams often begin with an unsolicited message. Someone may claim to be a representative of a government agency or company that provides special access to debt relief programs.
They may promise faster approval, lower monthly payments, or complete loan forgiveness. They often ask for upfront fees or request sensitive information such as account details or login credentials.
In reality, these services are often unnecessary or completely fraudulent. Many of the programs they promote are free and available directly from official government websites. If you pay a fee or share your information, you could lose money and put your identity at risk.
Be aware of common red flags
Scammers often use similar tactics to gain trust and increase urgency. Please take note if you notice the following:
• Requiring an upfront fee to apply for loan forgiveness.
• Guaranteed approval or promise of immediate results.
• Messages from the government requesting personal information.
• Pressure to act quickly or risk missing out on opportunities.
These warning signs are strong indicators that something isn’t right. Remember, you never have to pay a fee to access the federal student loan relief program.
Go directly to trusted sources
If you are considering repayment options or forgiveness programs, please visit the official website directly. The U.S. Department of Education provides accurate, up-to-date information and resources. Create and maintain an account at StudentAid.gov to track your loans and receive official updates.
Protect your personal information
Student loan accounts contain sensitive information and must be kept securely. Never share your FSA ID, password, or financial information with anyone who contacts you unexpectedly.
No government agency or loan servicer will request this information through unsolicited phone calls, emails, or text messages. Treat your login credentials like your bank password. Keeping it private prevents unauthorized access.
Be wary of “supporting” companies
Some companies claim they can process student loans for a fee. They may pretend to be helpful, but they often charge for services that you can complete yourself for free.
These companies may also make promises that they can’t keep, leaving you with the same debt but less money. Taking the time to understand your options and working directly with your loan servicer is often the safest approach.
Report suspicious activity
If you think you’ve been contacted by a scammer, please report it. Reporting a scam helps protect others and stop fraudulent activity. Please report it at BBB.org/ScamTracker.
You can also report suspicious messages or companies to the Federal Trade Commission at reportfraud.ftc.gov. It may be helpful to record the interaction if further action is required.
Approach debt reduction carefully
Student loan forgiveness programs can be a great help, but they must be approached with caution. By taking the time to research, verify information, and protect your data, you can avoid unnecessary risks. If an offer seems too good to be true, it’s worth taking a closer look. By being a little more careful, you can avoid financial loss and frustration.
For more information, visit BBB.org. BBB’s Business Directory includes profiles with verified reviews and complaint history to help you find trustworthy businesses. You can also file a complaint or submit a customer review. To investigate or report a scam, visit BBB Scam Tracker.
For more information on how to avoid common scams, visit BBB.org/AvoidScams. If you or a loved one encounters a scam, whether you lost money or not, report it at BBB.org/ScamTracker.
Jan Diaz is president and CEO of the Better Business Bureau of Northern Indiana, which serves 23 counties. Contact the BBB at 800-552-4631 or visit: BBB.org.
