Student loans can follow you for a large part of your adult life — which is why they’re a lucrative target for scammers. If you’ve got student loan debt, you might have seen ads or been contacted by companies promising help and relief. Some of those offers are scams, and the FTC is cracking down on them.
The FTC's Operation Game of Loans is a joint FTC and state law enforcement sweep against student loan debt relief scammers. The operation includes seven actions filed by the FTC, with five new cases announced recently.
How the scam usually works:
You’ll get a call from someone claiming to be affiliated with the government or your loan provider, promising to reduce or eliminate student loan debt. They’ll say you’re “pre-approved” or “pre-qualified” and pressure you to sign up immediately. The catch? Enrolling requires an illegal advance fee — often $1,500 or more. After you pay, the company disappears, doing little to nothing about your debt. At best, consumers get help for services they could have gotten from their loan servicer or the U.S. Department of Education for free.
Know this: If you need help with your student loans, paying a company isn’t necessary. There’s nothing they can do for you that you can’t do yourself for free. Federal borrowers can visit StudentAid.gov/repay for a complete guide to repayment. Private borrowers should contact their loan servicer directly. For more resources, check out the FTC’s Student Loans page.
The Bigger Problem: Scammers Hide Behind Unknown Calls
These scams work because it’s nearly impossible to tell a legitimate call from a fake one. When your phone only shows “Scam Likely” or “Unknown Caller,” people either ignore important calls or fall for fraudsters pretending to be someone they trust. In 2024 alone, phone scams cost Americans billions — and student loan scams are one of the fastest-growing categories.
The Solution: Make Every Call Identifiable with Branded Calling
At First Orion, we help legitimate organizations cut through the noise and protect consumers with Branded Calling. When your bank, loan servicer, or government agency calls, your customers should see exactly who’s calling — with your business name, logo, and call reason right on their mobile screen.
Branded Calling helps enterprises increase answer rates for important outreach, while making it harder for scammers to impersonate trusted brands. Because when customers know it’s really you, they answer with confidence.
Protect your customers and your brand reputation. Learn how First Orion's INFORM Branded Calling is fixing business' trust problem.
Start your branded calling journey today with First Orion's free Business Number Registration.
