$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Biden student loan forgiveness impersonator scam
Scammers exploit confusion around changing federal student loan forgiveness policies by impersonating the Department of Education and offering fake forgiveness enrollment for a fee.
“student loan forgiveness scam”
↑ 74%Key indicators
Usually targetsBorrowers
Often hitsRemote workers and job seekers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers call or email borrowers claiming a new forgiveness program has been approved and the borrower has been pre-selected for enrollment
2
They create urgency by referencing real news about changing loan forgiveness policies and claim spots are limited
3
Victims pay fees and provide personal details including Social Security numbers, which are used for identity theft
What to do first
Verify all student loan policy changes at StudentAid.gov — the government will never call asking for payment to enroll in forgiveness
Related terms
Biden loan relief scamfederal forgiveness impersonationWhite House loan scamStudent loan scamsPhoneSurgingBorrowersRecent graduatesRemote workers and job seekersEducators and studentsRetirees and seniorsUnited StatesBiden loan relief scamfederal forgiveness impersonation
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Kevin, 35, a borrowers, encountered what appeared to be a legitimate student loan scams situation while using Phone. Scammers call or email borrowers claiming a new forgiveness program has been approved and the borrower has been pre-selected for enrollment
Step 2
What happened next was calculated: They create urgency by referencing real news about changing loan forgiveness policies and claim spots are limited
Step 3
The pressure escalated quickly: Victims pay fees and provide personal details including Social Security numbers, which are used for identity theft
The outcome
Kevin realized something was wrong when caller claims to be from the biden administration or a special forgiveness task force. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify all student loan policy changes at StudentAid.gov — the government will never call asking for payment to enroll in forgiveness Kevin's experience shows why caller claims to be from the biden administration or a special forgiveness task force and says you have a limited window to enroll before the program closes permanently are the clearest early warning signs.
How to identify it
- Caller claims to be from the Biden administration or a special forgiveness task force
- Says you have a limited window to enroll before the program closes permanently
- Requests an activation fee or processing payment to secure your spot
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify all student loan policy changes at StudentAid.gov — the government will never call asking for payment to enroll in forgiveness
- ✓Do not provide your Social Security number to unsolicited callers
- ✓Report impersonation calls to the Department of Education Office of Inspector General
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The Department of Education Office of Inspector General has warned repeatedly about scammers exploiting student loan forgiveness policy changes to defraud borrowers
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Tell close contacts if a phone or text scam used your identity, so scammers cannot reuse the same story against people around you.
- ✓Verify all student loan policy changes at StudentAid.gov — the government will never call asking for payment to enroll in forgiveness
- ✓Do not provide your Social Security number to unsolicited callers
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The Department of Education Office of Inspector General has warned repeatedly about scammers exploiting student loan forgiveness policy changes to defraud borrowers
OpenScam research
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Borrowers, Recent graduates
Geographic concentration
United States
Primary channel
Phone — Student loan scams
Why this group is vulnerable
Borrowers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The Department of Education Office of Inspector General has warned repeatedly about scammers exploiting student loan forgiveness policy changes to defraud borrowers
Source notes
- OpenScam research
Frequently asked questions
Common questions about biden student loan forgiveness impersonator scam
How does the biden student loan forgiveness impersonator scam work?+
Scammers call or email borrowers claiming a new forgiveness program has been approved and the borrower has been pre-selected for enrollment They create urgency by referencing real news about changing loan forgiveness policies and claim spots are limited Victims pay fees and provide personal details including Social Security numbers, which are used for identity theft
What are the warning signs of biden student loan forgiveness impersonator scam?+
Caller claims to be from the Biden administration or a special forgiveness task force Says you have a limited window to enroll before the program closes permanently Requests an activation fee or processing payment to secure your spot
What should I do if I encounter biden student loan forgiveness impersonator scam?+
Verify all student loan policy changes at StudentAid.gov — the government will never call asking for payment to enroll in forgiveness Do not provide your Social Security number to unsolicited callers Report impersonation calls to the Department of Education Office of Inspector General
Who is most at risk for biden student loan forgiveness impersonator scam?+
This scam primarily targets Borrowers, Recent graduates. It is most commonly reported in United States and typically appears on Phone.
Is biden student loan forgiveness impersonator scam getting worse?+
Biden student loan forgiveness impersonator scam is currently surging — reports are increasing rapidly. It has been reported across US. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.