Key Points
- If someone used your identity to take out student loans, act immediately – time matters for stopping collections and disputing the debt.
- Federal borrowers can request a False Certification (Identity Theft) Discharge through the Department of Education.
- Private student loan fraud must be disputed directly with the lender and credit bureaus.
Identity theft involving student loans is an increasingly common (and serious) crime. In these cases, someone uses your Social Security number or personal details to apply for a loan you never authorized.
It can happen when:
- A criminal uses your identity to enroll at a college and secure federal aid.
- A relative or acquaintance fraudulently applies for loans in your name – even a parent or child.
- Scammers exploit weak data-protection or FAFSA security gaps to create fake accounts.
If left unaddressed, these loans can lead to collections calls, wage garnishment, credit damage, and tax refund seizures – even though you never borrowed the money. We recently had a reader reach out, who was retired, and found out someone had opened a student loan in their name. They were getting collection calls as a result!
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How To Spot Student Loan Identity Theft
Sadly, it sometimes is first spotted because you receive a collection letter or call. But common warning signs include:
- Unable to file the FAFSA because someone created an account using your information already.
- A new loan or servicer appearing on your credit report.
- Unexpected bills or notices from a loan servicer.
- Suspicious financial-aid emails from a school you never attended.
- Denials of legitimate credit applications due to “high student loan debt.”
You can confirm whether federal loans exist in your name by logging into StudentAid.gov with your FSA ID and checking “My Aid.” If you see a loan or school you don’t recognize, you’ll need to start the fraud-reporting process immediately.
Step-By-Step Disputing Fraudulent Student Loans
1. Contact Your Loan Servicer
If you spot an unfamiliar loan, call the servicer immediately. Tell them you believe the loan was taken out as a result of identity theft. Request a forbearance while the account is investigated. Get the servicer’s name, phone number, and reference number for your records.
2. File a Report at IdentityTheft.gov
Visit IdentityTheft.gov (the official FTC portal) and submit a formal identity-theft report. You’ll receive a personalized recovery plan and an official Identity Theft Report that supports your loan-discharge request.
3. Report It to the Police
File a local police report that specifically lists “student loan identity theft.” Keep a copy – the Department of Education requires it for federal discharge.
4. Notify the Department of Education
Submit a False Certification (Identity Theft) Discharge Application (PDF File), available on StudentAid.gov.
Attach:
- Your completed application form
- A copy of your police report
- The FTC Identity Theft Report
- Photo ID and supporting documentation
Mail the packet to your loan servicer or the U.S. Department of Education address listed on the form.
5. Dispute Private Loans With Lenders and Credit Bureaus
Private student loans aren’t eligible for federal discharge forms. Instead:
- Contact the private lender’s fraud department.
- Send copies of your FTC and police reports.
- File disputes with Equifax, Experian, and TransUnion under the Fair Credit Reporting Act (FCRA).
- Ask each bureau to remove the fraudulent loan from your file.
6. Place Credit Freezes or Alerts
Use the following links to freeze your credit:
A freeze stops lenders from opening new accounts in your name.
7. Monitor for Follow-Up Activity
Keep checking your StudentAid.gov account and credit reports every few weeks. If you receive collection calls or new loan notices, document everything in writing.
Understanding Federal False-Certification (Identity Theft) Discharge
If the Department of Education determines that your loan was falsely certified, the loan can be completely discharged – meaning you owe nothing.
To Qualify:
- The loan must be federal (Direct or FFEL).
- You must never have benefited from the funds (for example, you didn’t attend classes or receive the money).
- You must submit a police report and Identity Theft Report.
- You must not have signed or authorized the loan application.
Once approved, the Department of Education will:
- Discharge the entire balance.
- Remove the loan from your credit report.
- Refund any payments you made.
- Notify collection agencies to stop contact.
If the Department denies the discharge, you can appeal within 30 days and submit additional evidence.
Private Student Loan Fraud
Private student loans are not eligible for federal loan forgiveness as a result of identity theft, but lenders are required by law to investigate identity theft claims.
If your lender refuses to cooperate:
- File a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint.
- Contact your state attorney general’s office, which can often intervene.
- Seek legal help from a consumer-law attorney specializing in identity theft.
Preventing Student Loan Identity Theft
The easiest way to avoid these issues is to try to prevent them before they arise.
- Use two-factor authentication on your StudentAid.gov and servicer accounts.
- Never share your FSA ID or password with anyone – not even school officials or “loan assistance” companies.
- Check your StudentAid.gov dashboard quarterly to verify no new loans appear.
- Shred or encrypt documents containing your SSN or tax info.
- Use credit monitoring services that alert you to new accounts.
- Warn relatives or dependents who might be applying for aid to safeguard their personal data.
Student loan scams are increasing, so you need to stay vigilant.
FAQ: Common Questions About Student Loan Identity Theft
1. How can I check if someone took out loans in my name?
Log in to StudentAid.gov with your FSA ID to view all federal loans. Review your credit reports for any private loans or unfamiliar lenders.
2. Can I get federal student loans removed from my record if they were fraudulent?
Yes. Submit a False Certification (Identity Theft) Discharge Application with supporting documents. If approved, the loans are canceled and your credit record is corrected.
3. What if the loans are private?
Dispute directly with the lender and credit bureaus. Private lenders must investigate identity theft under the Fair Credit Reporting Act.
4. Do I need to file a police report?
Yes. Both the FTC and Department of Education require one for identity-theft discharges.
5. Will my credit score recover after a fraudulent loan is removed?
Yes, once the discharge or dispute is approved, the loans should be deleted from your reports. Check again within 30-60 days to confirm.
6. How long does the discharge process take?
It can take three to six months depending on documentation and verification time.
7. Can parents or guardians commit this type of fraud?
Yes, and it’s more common than you might expect. You still have the right to request a discharge—even if the perpetrator is a relative.
8. Will I be liable for payments while it’s investigated?
Usually not. You can request a forbearance while the Department reviews your claim.
9. Can I be denied federal aid if this happened to me?
No. Once the fraudulent loan is removed, your eligibility for legitimate aid is restored.
10. Where can I get free help?
Contact the Federal Student Aid Information Center (1-800-433-3243) or an attorney specializing in student-loan disputes.
Bottom Line
If someone took out student loans in your name, don’t panic—but don’t wait.
Act fast, gather documentation, and report the theft through official federal and credit-reporting channels. The Department of Education’s False Certification Discharge exists precisely for this situation, and once approved, it can erase the fraudulent debt entirely.
Identity theft can be messy, but with persistence, you can clean your record and reclaim your financial future.
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Editor: Clint Proctor
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