You should be aware of these schemes in case someone asks you to participate, or in case you see fraudulent activity. Indicators of potential fraud include the following:

  • Charging for assistance in filing claims.
  • Misreporting educational hours.
  • Charging more than market value for books and supplies.
  • Advertising a lower tuition rate than they are billing VA for Veteran student enrollments.
  • Advertising that one instructor will be teaching a class and then assigning a different instructor.
  • Offering payment to students who register but are not asked to attend classes.
  • Overpromising education or job opportunities.
  • Reporting that students only need to sign-in but not attend classes.
  • Offering debt relief for a fee through deceptive advertisements.
  • Lying on the Free Application for Federal Student Aid (FAFSA®) form or other federal student loan form in order to qualify for more financial aid.
  • Lying on any student loan application or form (Parent Loan for Undergraduate Students (PLUS) Application, Master Promissory Note (MPN), Loan Consolidation, etc.).
  • Lacking written policies and procedures or the school is unable to produce records (sometimes claimed as lost or destroyed).

Tips to Avoid Scams

Do’s

  • Apply directly to VA. Veterans may submit applications for VA benefits securely or in person at any regional office. Veterans may file claims directly with VA, and VA will help gather the necessary evidence. There are no costs or hidden fees to apply.
  • Confirm that the school is approved, exercise extra caution, and ask multiple sources when considering a for-profit school. Use the GI Bill Comparison Tool to research colleges and employers approved for the GI Bill.
  • Do work with a Veterans representative at prospective colleges or universities for the student enrollment process and experience.
  • Only trust reliable sources, e.g., StudentAid.gov or the Consumer Financial Protection Bureau student loan page.
  • Be vigilant if anyone requests payment for services.
  • Confirm payments received are accurate.
  • Call the VA if a school asks you to register and says you are not required to attend classes or the instruction you receive is not what was promised or advertised.
  • Sign up to be notified when the Student Loan Debt Relief application becomes available.
  • Create a Federal Student Aid (FSA) ID at https://www.studentaid.gov. You will not need it for the debt relief application, but having an FSA ID can allow you to easily access accurate information on your loan and make sure FSA can contact you directly, helping you equip yourself against scammers trying to contact you. Log in to your current Student Aid account and keep your contact info up to date.
  • Make sure your loan servicer has your most current contact information. If you don’t know who your servicer is, you can log into StudentAid.gov and see your servicer(s) in your account.

Don’ts

  • Do not pay anyone to help you apply for loan forgiveness. Nobody can get your loans forgiven faster, even if you pay them. This program is completely free — and the only way to apply is through Federal Student Aid.
  • Do not share your VA, Social Security number, FSA ID login information or any other government benefits. If anyone says they need your information to help you, that’s a scam. Don’t do it. They can cut off contact between you and your servicer — and even steal your identity.
  • Do not trust someone who contacts you saying they’re affiliated with the Department of Education. Scammers use official-looking names, seals, and logos. They promise special access to repayment plans.
  • Do not sign a blank form for someone else to complete later. Always review the completed form before signing and keep a copy of the completed form for recordkeeping purposes.
  • Do not ever give personal or financial information to an unfamiliar caller. When in doubt, hang up and call your student loan servicer directly. You can find your federal student loan servicer’s contact information.
  • Do not refinance your federal student loans unless you know the risks. If you refinance federal student loans that are eligible for debt relief into a private loan, you will lose out on important benefits like one-time debt relief and flexible repayment plans for federal loans.