The U.S. Department of Education reports more than 40 percent of all borrowers are late or in default, so it’s no wonder unethical student debt relief companies are popping up.

“Borrowers are more stressed than ever before about repaying their loans,” said Sarah Hamilton, student loan supervisor for Take Charge America, a national nonprofit credit counseling and student loan counseling agency.

To help sort out the confusion, Hamilton offers signs of potential repayment scams:

•Excessive fees:Many scammers promise lower rates or debt elimination in exchange for hefty fees ranging from $600 to $1,200. If you have federal student loans, you can manage the repayment process yourself for free at studentloans.gov.

Or, you can seek guidance from a nonprofit student loan counseling agency for half the rate, and better service.

•High-pressure tactics:Scammers may pressure you with “limited-time” or “exclusive” offers. Often, these companies put you into loan deferment or forbearance, which solves the problem for the short term but doesn’t address the root issue.

•Instant forgiveness:A promise of instant loan forgiveness or “Obama forgiveness” is irresistible. Scammers may ask for your private data and charge a fee, which seems a small price. In reality, instant forgiveness doesn’t exist, and any promises should serve as red flags.

In rare cases borrowers with permanent disability can obtain forgiveness, but that involves detailed monitoring and can only be granted directly through the Department of Education.

Forgiveness programs for public service employees, nonprofit workers and teachers are available. They require five to 10 years of service within the industry.

Most for-profit organizations don’t bring up legitimate forgiveness programs because they can’t turn a quick profit.

•Power of attorney:Scammers may tell you they require power of attorney to reduce your debt, which enables them to alter your student loans without your consent. If authorization falls in the wrong hands, it could cause irreversible damage.

•Unsolicited assistance:If you receive cold calls from so-called relief companies, steer clear. Your student loan servicer will not contact you in this way, nor will a nonprofit counseling agency.

•Credibility:If you are considering assistance from a third party, verify with the Better Business Bureau at bbb.org.