$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
income-driven repayment plan enrollment scam
Scammers charge fees to enroll borrowers in income-driven repayment plans that are freely available through federal loan servicers, and may collect personal data for identity theft.
“student loan forgiveness scam”
↑ 74%Key indicators
Usually targetsBorrowers
Often hitsEducators and students
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 advertise on social media promising dramatically lower monthly student loan payments through special income-driven programs
2
They charge fees and collect tax returns, pay stubs, and FSA credentials to submit the IDR application on the borrower's behalf
3
The borrower could have applied for free, and their personal data is now in the hands of the scammer for potential identity theft
What to do first
Apply for income-driven repayment plans for free through your federal loan servicer or at StudentAid.gov
Related terms
IDR scamincome-based repayment fraudSAVE plan scamStudent loan scamsSocial mediaSurgingBorrowersStudentsLow-income householdsEducators and studentsUnited StatesIDR scamincome-based repayment fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Fatima, 35, a borrowers, encountered what appeared to be a legitimate student loan scams situation while using Social media. Scammers advertise on social media promising dramatically lower monthly student loan payments through special income-driven programs
Step 2
What happened next was calculated: They charge fees and collect tax returns, pay stubs, and FSA credentials to submit the IDR application on the borrower's behalf
Step 3
The pressure escalated quickly: The borrower could have applied for free, and their personal data is now in the hands of the scammer for potential identity theft
The outcome
Fatima realized something was wrong when company charges to enroll you in idr plans that are free through your federal loan servicer. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Apply for income-driven repayment plans for free through your federal loan servicer or at StudentAid.gov Fatima's experience shows why company charges to enroll you in idr plans that are free through your federal loan servicer and claims they have special access to lower payment amounts beyond what the government offers are the clearest early warning signs.
How to identify it
- Company charges to enroll you in IDR plans that are free through your federal loan servicer
- Claims they have special access to lower payment amounts beyond what the government offers
- Asks for your tax returns and FSA ID to manage your account
- 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
- ✓Apply for income-driven repayment plans for free through your federal loan servicer or at StudentAid.gov
- ✓Never share your FSA ID or tax documents with third-party companies
- ✓File complaints with the CFPB at consumerfinance.gov/complaint
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.
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 CFPB and state attorneys general have pursued enforcement against companies charging illegal advance fees for student loan repayment assistance
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.
- ✓Apply for income-driven repayment plans for free through your federal loan servicer or at StudentAid.gov
- ✓Never share your FSA ID or tax documents with third-party companies
- ✓File complaints with the CFPB at consumerfinance.gov/complaint
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 CFPB and state attorneys general have pursued enforcement against companies charging illegal advance fees for student loan repayment assistance
FTC Consumer Sentinel 2025
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, Students, Low-income households
Geographic concentration
United States
Primary channel
Social media — 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 CFPB and state attorneys general have pursued enforcement against companies charging illegal advance fees for student loan repayment assistance
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about income-driven repayment plan enrollment scam
How does the income-driven repayment plan enrollment scam work?+
Scammers advertise on social media promising dramatically lower monthly student loan payments through special income-driven programs They charge fees and collect tax returns, pay stubs, and FSA credentials to submit the IDR application on the borrower's behalf The borrower could have applied for free, and their personal data is now in the hands of the scammer for potential identity theft
What are the warning signs of income-driven repayment plan enrollment scam?+
Company charges to enroll you in IDR plans that are free through your federal loan servicer Claims they have special access to lower payment amounts beyond what the government offers Asks for your tax returns and FSA ID to manage your account
What should I do if I encounter income-driven repayment plan enrollment scam?+
Apply for income-driven repayment plans for free through your federal loan servicer or at StudentAid.gov Never share your FSA ID or tax documents with third-party companies File complaints with the CFPB at consumerfinance.gov/complaint
Who is most at risk for income-driven repayment plan enrollment scam?+
This scam primarily targets Borrowers, Students, Low-income households. It is most commonly reported in United States and typically appears on Social media.
Is income-driven repayment plan enrollment scam getting worse?+
income-driven repayment plan enrollment 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.
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