Student loan fraud occurs when individuals or organizations deceive the government or financial institutions to obtain student loans under false pretenses. This can involve providing inaccurate information on loan applications, such as falsifying income or enrollment status, to secure funds that the borrower is not entitled to receive. Another form of student loan fraud includes scams where companies charge fees to help borrowers manage their loans or apply for forgiveness programs. These scams often mislead students into thinking they need to pay for services that are available for free through official government channels, ultimately leading to financial loss and further complications.