Why Do I Keep Getting Calls About Student Loan Forgiveness?

Unsolicited calls about student loan forgiveness are a common experience for many individuals in the United States. These frequent communications often create confusion, leaving recipients unsure about their legitimacy or origin. Understanding the nature of these calls is important to distinguish between helpful guidance and deceptive solicitations.

The Nature of the Calls

These calls often stem from public interest in student loan relief and the opportunistic tactics of various entities. While rare, some calls might originate from a federal loan servicer or the U.S. Department of Education. These legitimate communications typically relate to a borrower’s specific account or announced federal initiatives.

Most calls, however, originate from private companies or individuals attempting to profit from the desire for student loan assistance. These groups often capitalize on current events, such as new government initiatives, to make their offers appear timely and legitimate. They frequently obtain contact information through various means, including publicly available data or lead generation services. These unsolicited calls aim to engage individuals who may be seeking help with their student loan debt.

Real Student Loan Forgiveness Programs

The U.S. Department of Education and other official bodies administer several legitimate programs for student loan forgiveness, discharge, or repayment benefits. These programs have specific eligibility criteria and are not offered through unsolicited calls from private companies. Borrowers typically apply directly through official channels or their loan servicers.

One prominent program is Public Service Loan Forgiveness (PSLF), which forgives the remaining balance on federal Direct Loans after 120 qualifying monthly payments while working full-time for a qualifying government or non-profit organization. Income-Driven Repayment (IDR) plans also offer forgiveness, typically after 20 or 25 years of payments, depending on the plan, if the loan balance is not fully repaid. A one-time adjustment to IDR accounts aims to provide credit for past periods of repayment, deferment, and forbearance, potentially leading to earlier forgiveness for some borrowers.

Other Forgiveness Programs

Total and Permanent Disability (TPD) discharge: Available for federal student loans if a borrower is unable to engage in any substantial gainful activity due to a physical or mental impairment. This discharge can be based on documentation from the Department of Veterans Affairs, the Social Security Administration, or a physician’s certification.
Borrower Defense to Repayment: Allows for federal loan discharge if a school engaged in misconduct or defrauded students.
Closed School Discharge: Offers forgiveness for federal loans if a school closes while a student is enrolled or soon after withdrawal, preventing program completion.
Teacher Loan Forgiveness: Offers up to $17,500 for qualifying teachers after five years of service.
Perkins Loan cancellation: Available for teachers and certain public service professions.

Spotting Fraudulent Offers

Distinguishing between legitimate and fraudulent offers is important for protecting personal and financial information. Many deceptive schemes employ specific tactics to lure individuals into paying for services that are either free or nonexistent.

Red Flags of a Scam

Upfront fees: A demand for an upfront fee before any services are rendered or before forgiveness is granted. Legitimate federal programs, including those offered by the Department of Education, do not charge fees for loan forgiveness or for assistance with applications.
Guaranteed forgiveness: Promises of immediate or guaranteed loan forgiveness, often using high-pressure sales tactics to create a sense of urgency. They might claim an offer is limited or that programs are ending soon.
Sensitive information requests: Requests for sensitive personal information, such as your Federal Student Aid (FSA) ID username and password, Social Security number, or bank account details. Official entities like the U.S. Department of Education will never ask for your FSA ID password.
Mimicking government agencies: Use of unofficial names, seals, or logos that mimic government agencies to appear credible.
Direct payment requests: Suggestions that borrowers pay them directly, promising to forward payments to the loan servicer, which can lead to missed payments and increased debt.

Protecting Your Information and Stopping Unwanted Communications

Taking proactive steps can help protect your personal information and reduce the volume of unwanted communications related to student loan forgiveness. Registering your phone number on the National Do Not Call Registry is a fundamental step, although it primarily deters legitimate telemarketers and may not stop all scam calls.

Protecting Yourself

Use call-blocking: For calls that bypass the registry, utilize call-blocking apps or features offered by your phone service provider to help filter or identify suspicious numbers.
Avoid sharing sensitive information: It is essential to avoid sharing sensitive personal information, such as your Social Security number, bank account details, or FSA ID, with unsolicited callers or through unverified websites.
Verify callers: Always verify the identity of any caller claiming to be from a loan servicer or the Department of Education by contacting them directly through official phone numbers or websites (e.g., StudentAid.gov).
Report scams: If you suspect you have been targeted by a scam, reporting the incident to relevant authorities is important. You can file a complaint with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov, the Federal Communications Commission (FCC), or through the Feedback Center on StudentAid.gov. Reporting these attempts helps law enforcement agencies investigate and take action against fraudulent operations, contributing to broader consumer protection efforts.