FTC Warns of Rising Student Loan Scams, Says Fraudsters Took Millions From Borrowers

Regulators say in one instance a now banned operator used fake promises of loan forgiveness to collect over $16 million in illegal fees.

Graduates attend a commencement ceremony at Harvard University in Cambridge, Mass., on May 29, 2025. Rick Friedman/AFP via Getty Images

The Federal Trade Commission (FTC) is warning borrowers to steer clear of student loan debt-relief scams, after shutting down a group of companies last month that allegedly charged millions in illegal fees and left customers worse off.

The warning, issued June 6, comes as part of a broader push by the FTC to raise awareness about deceptive debt-relief schemes targeting Americans with student loans.