Scam Alert: What Borrowers Need to Know About Third-Party Student Loan Calls

The restart of student loan repayment has created confusion, stress, and — unfortunately — opportunity for scammers.

We’re seeing reports of borrowers who are past due receiving calls from individuals claiming to be “third-party partners” working with loan servicers. These callers often say they can help “make the past due amount more affordable” or assist in setting up a payment right away.

While it may sound helpful, these calls are not legitimate.

The student loan industry is a prime target for bad actors. And borrowers who are already feeling financial pressure are often the ones scammers try to reach first.

Here’s what you need to know to protect yourself.

🚩 Red Flag #1: They Ask for Your Login or Password

Your federal or private loan servicer will never call you to ask for your password, full login credentials, or multi-factor authentication codes.

If anyone asks for:

• Your FSA ID
  
• Your account password
  
• A one-time verification code
  
• Full Social Security number over the phone
  

That’s a major warning sign.

Never share your login information with anyone — even if they claim to be helping you.

🚩 Red Flag #2: Pressure to Act Immediately

Scammers often create urgency. They may say:

• “You need to make a payment right now to avoid consequences.”
  
• “We can fix this today if you just provide your information.”
  
• “This offer expires if you hang up.”
  

Legitimate servicers will communicate through your official account portal and mailed notices. You should always have the opportunity to log in directly through the official website to review your options.

If someone pressures you, pause. Hang up. Verify independently.

🚩 Red Flag #3: They Claim to Be a “Partner” Working With Your Servicer

Some callers say they’re a third party “working with” loan servicers to help borrowers who are behind.

While there are legitimate student loan support organizations, they do not cold-call borrowers asking for credentials or payment information.

If you didn’t initiate the contact, be cautious.

What You Should Do If You Receive a Suspicious Call or Email

1. Do not provide any personal information.
   
2. Do not click on suspicious links.
   
3. Hang up or delete the message.
   
4. Log in directly to your loan servicer’s official website.
   
5. Reach out to PeopleJoy if you’re unsure.
   

If you ever question whether a call or email is legitimate, our team can help you verify it before you take action.

Why Borrowers Are Being Targeted

When repayment restarts or past-due balances increase, borrowers may feel anxious or unsure about their options. Scammers exploit that uncertainty by offering quick fixes.

But there are real, legitimate options available:

• Income-driven repayment plans
  
• Deferment or forbearance options
  
• Loan rehabilitation (for defaulted loans)
  
• Direct communication with your servicer
  

You should not have to pay a third party just to access options that are already available to you.

Protecting Your Progress

If you’ve worked hard to stay on track — or you’re trying to get back on track — the last thing you need is someone taking advantage of you.

Please remember:

• Your servicer will never call and ask for your password or login details.
  
• Never share sensitive account credentials over the phone or email.
  
• If something feels off, trust that instinct.
  

And most importantly — you’re not alone in this. If you receive a suspicious call or email, reach out to the PeopleJoy team. We’re here to help you navigate repayment safely and confidently.

Staying informed is one of the best ways to protect yourself.

We’ve got your back.