If you can’t make your student loan payment and are looking for help, you'll likely come across ads for debt relief services. But are these companies legit, or are they just scams? The short answer is yes — to both questions.
Sometimes, the company is waving a red flag that is a clear marker of a scam, such as pressuring you to sign up and demanding money upfront.
Some of the companies may take your money and disappear, but others may actually deliver on their promise to provide debt relief services — for a price, of course. . But that’s a scam, too: You can get legitimate student loan help without paying exorbitant fees to private companies. You just have to work with debt management or credit counseling organizations, instead.
Debt relief services vs. debt management organizations
Debt relief services are private companies that promise to help you settle your debt. The more legitimate ones typically come up with new payment plans for you, often by asking servicers to forgive a certain amount if you pay them the rest.
But, there are a lot of downsides. These companies often tell you to stop your payments, which damages your credit score. There's also no guarantee that the debt relief service will be successful — your loan servicers can simply refuse to negotiate and even take legal action to receive the balance. Lastly, these services often charge a lot of money, and when you add that to the fees you might've incurred and the new payments you'll have to make, you might not save any money at all.
Debt management and counseling organizations are typically nonprofits. Members of these organizations provide student loan advice. While they can't negotiate with servicers on your behalf, they can help you come up with debt management plans and find free resources made specifically for student loan debt. Working with these advisors and credit counselors can empower you to pursue debt consolidation or forgiveness on your own, without the high fees.
Red flags to look out for when searching for student loan debt help
Student loan scammers have stolen millions from borrowers. The Federal Trade Commission has sent refunds out to affected borrowers numerous times in the past few years after discovering widespread debt relief scams, including over $4.1 million announced in March 2024 and over $740,000 announced in August 2025.
If you're not sure whether the student loan debt service or organization you've looked up is legit or part of a scam, look out for these red flags:
- It looks like it's mimicking another organization: Don’t be misled by an official-sounding name like "Student Advisory Board" or a .org website. Student loan debt relief scammers change names frequently and often mimic the names of government agencies or well-established nonprofit advisors.
- It wants to take over all contact with your servicer: By controlling all of the contact you have with your servicer, a scammer can lie about where your money is going. This is especially true if you sign something that gives someone the power to make legal decisions on your behalf.
- It asks for identifying information upfront: Stay away from businesses that immediately want information like your Social Security number or Federal Student Aid ID.
- It claims there will be no impact to your credit score: Some companies will even falsely claim they can get certain debts removed from your credit report.
- It demands immediate payments: These companies will likely pressure you by talking about limited-time offers or potential legal consequences if you don't pay quickly.
- It promises you too much: In reality, these companies don't know what they can do for you without knowing your exact financial situation, and even then, there's no guarantees. If a company promises you total debt relief upfront, it's a scam.
Where to get legitimate student loan help
Your best bet is usually to try to consolidate your loans, enroll in a new repayment plan or pursue forgiveness on your own. Your servicer or lender is the best place to start. If you do need additional help, look for nonprofit groups and certified credit counseling agencies. While counselors or legal professionals may charge fees for specific services, many never charge a fee for advice.
Here are some vetted student loan help resources to consider; they are established:
| Student loan help resource | Best for |
|---|---|
| Advice on repayment plans, forgiveness programs and dispute resolution. | |
| Comprehensive information on options for student loan borrowers. | |
| Advocacy on behalf of all borrowers to influence policy. | |
| Complete financial review for struggling borrowers, which can include advice on student loan options and plans for dealing with other debt. | |
| Advice on repayment plans, help with paperwork and budget counseling. | |
| Free virtual workshops and one-on-one appointments for struggling borrowers. | |
| Information for student loan borrowers and an attorney directory. |
