Protect Yourself from Student Loan Forgiveness Scams

The concept of student loan forgiveness can be alluring, especially given that 12% of our population has an average of $33,153 in student loan debt. It’s important to be cautious as there are legitimate forgiveness programs as well as scams. It’s crucial to be aware of the warning signs and know how to steer clear of these scams.

Not All Loans are Eligible for Forgiveness: Avoid trusting the promise of immediate forgiveness without considering your specific loan terms. Legitimate forgiveness programs are typically tailored for specific loan types, professions, and economic circumstances.

Forgiveness Shouldn’t Cost You: No legitimate program will ask for upfront fees to apply for forgiveness. Scammers will try to charge application fees or upfront costs. Watch for this red flag.

Stay Cool Under Pressure: Scammers will use high-pressure tactics to force you into a quick decision and steal your money. Take your time, do your own research, and stop all conversations with anyone who rushes you.

Social Media is NOT a Legit Contact Method: If you receive messages through any social media platform about loan forgiveness, ignore it. Legit programs will come to you through traditional channels such as the U.S. Postal Service.

To avoid loan forgiveness scams, practice smart student loan management.

• Keep your loan servicer information handy. If you receive a student loan forgiveness offer, contact your loan servicer to ensure the program’s legitimacy.
• Watch for imposters. Anyone can say they’re from a government agency or loan provider. Please do not share any information until you’ve confirmed their authenticity.
• Keep sensitive information private. Never share your Social Security Number, Federal Student Aid ID, or bank or credit union information.
• Do your own research. Before signing any documents, do a few online searches, and call your loan servicer.

Forgiveness Programs that are Real
The U.S. Department of Education is a great place to start.

Additionally, some loan forgiveness programs for Montanans are also available, including these options:

Montana Institutional Nursing Incentive Program

Montana Rural Physician Incentive Program

Montana Agriculture Student Loan Assistance Program

Report Student Loan Forgiveness Scams
Contact the Federal Trade Commission, as well as your original loan servicer, if you become a victim of a loan forgiveness scam.

Clearwater is Here for You
Student loans can feel heavy on any budget. If you’re having issues making payments, our financial counselors can help. Just call 406-523-3539.