Paid Services- Avoiding Scams
U.S. Department of Education

Paid Services- Avoiding Scams

I was contacted by a company that says they work with you, and that I may be eligible for loan forgiveness, is this true?

There are many "student loan relief " companies that for a fee offer to 'assist you prepare forms' to receive loan benefits or services like loan consolidation. These are services you can obtain yourself FOR FREE. These companies are not recognized, associated, nor sanctioned by the Department.  So, they may assist their customers in dealing with the Department, but they do not work with or for, nor are part of the U.S. Department of Education.

Please note there is only one federal loan consolidation program. Any federal student lender will be able to help you apply for free. The government does not sanction debt relief firms, so it is not true when these businesses claim they have been approved by the government. Additionally, loan forgiveness is not available to everyone, and there are very specific requirements such s making payments for a number of years that must be met prior to becoming eligible. 

The Department does not charge you anything for applying or inquiring about forgiveness, consolidation, or repayment plans, but you must be eligible to receive them. Please be aware of companies that try to just offer you forgiveness without qualification, and want to charge you for that.

To determine your eligibility for any such program, contact your loan servicer, or visit or call 1-800-4FED-AID FREE (1(800)433-3243).

Topic Information
  • Topic #: 28022-1064
  • Date Created: 11/09/2015
  • Last Modified Since: 04/19/2016
  • Viewed: 426

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