.webp)
TikTok has become a hotbed for financial advice, including a growing number of misleading claims about student loan repayment. A recent viral trend promotes dubious "hacks" that allegedly allow borrowers to erase their student debt with minimal effort. However, experts caution that these tactics are not only ineffective but could also lead to serious financial consequences.
One widely shared claim encourages users to dispute their student loans on credit reports or use government privacy laws—such as the Family Educational Rights and Privacy Act (FERPA)—to wipe out their debts entirely. These videos often gain tens of thousands of views, drawing in vulnerable borrowers seeking relief.
According to financial aid experts, however, these strategies don't actually eliminate debt. Simply removing a loan from a credit report does not mean it is forgiven. Borrowers remain legally obligated to repay their loans, and failure to do so can result in severe repercussions, including wage garnishment, withheld tax refunds, and legal action.
The Department of Education resumed federal student loan collections in May 2023 after a multi-year pause during the pandemic. Borrowers who default may face collection efforts or be automatically enrolled in income-driven repayment plans. Importantly, filing a FERPA complaint or disputing a loan entry does not cancel the debt, despite what some TikTok creators suggest.
Megan Walter, an analyst at the National Association of Student Financial Aid Administrators, warns against falling for these misconceptions. She clarifies that FERPA was never intended to address loan obligations and emphasizes that while removing a loan from a credit report might temporarily boost a borrower's credit score, “it does not mean the loans are no longer owed.”
Credit reporting agencies like Experian have also issued statements reminding consumers that disputing a loan doesn’t absolve them of the responsibility to repay it. Whether or not a loan is removed from a credit report depends on whether the lender agrees the information is inaccurate—a decision not in the borrower’s control.
**Consequences of Ignoring Student Loan Payments**
Defaulting on student loans can have long-term financial effects. The government has the authority to garnish wages, seize tax refunds, and even pursue legal action to recover unpaid balances. With nearly 38 million Americans holding student debt, and only about one-third currently making payments, the risk of widespread defaults is growing.
**Legitimate Relief Options Exist**
For borrowers struggling with repayment, several official programs are available to provide relief. Income-driven repayment (IDR) plans adjust monthly payments based on income and family size, with any remaining balance potentially forgiven after 10 to 25 years of consistent payments.
Additionally, the Biden administration’s SAVE (Saving on a Valuable Education) plan offers reduced monthly payments for many borrowers. However, the future of some of these programs remains uncertain due to ongoing legal challenges.
Experts urge borrowers to seek help through legitimate channels rather than following unverified advice on social media. Understanding the facts about student loans—and avoiding misleading information—is crucial to protecting your long-term financial health.