Many schools offer financial aid to students can who can’t affort pay, should always be your first line of defense when applying to an institute of higher learning.
The school you want to attend doesn’t have a financial aid package that works for you, then you just have to search for other ones that do, and, this is where the trouble usually starts. Many students are unaware of the huge amounts of school loan scams out there until it’s too late.
Paying for Your Education: 2 Common Scams to Be Aware Of
Usually, school loan scams come in two different forms. The first one is all about federal and/or private loans. The second one has to do with school or scholarships.
It’s relatively easy to uncover the fake ones. Some people look for information on the Web, check out the local library, and/or a check with the Better Business Bureau is always good start. That, and it usually doesn’t take more than a couple of minutes.
Just because someone offers to pay for your entire education in a shiny envelope with official looking stationery, doesn’t always mean it’s completely reliable.
Scholarships School Loan Scams
These scams work quite differently. They contact you via snail mail or e-mail, and will usually say something to the effect that you won some kind of scholarship. Or, they may say that you are eligible for certain scholarship because millions of dollars in unclaimed funds are available and go unused every year.
To claim your scholarship funds, all you have to do is pay an upfront fee. And that’s where they usually get you.
You’ll probably wonder how they got your e-mail or snail mail address. Most of the time scammers harvest an enormous amounts of e-mail addresses and/or by a list of students and potential students from a different number of resources.
This is what tricks many of us most of the time. They figure that it must be legitimate, because how would a scammer know how to contact them about the scholarship popped. Will live in the age of information, and scammers have other ways of finding targeted consumers, just like the legitimate businessmen do.
There are a huge number of options available to pay for your education. But, you must conduct due diligence to avoid getting caught up in fraudulent students loan scams. It’s always better to invest some time researching all of the possibilities, then to find yourself scammed out of all your money just because you didn’t pay attention.
Protect Yourself by Knowing How to Avoid Student Loan Scams When Paying for College
In the United States, millions of university and college students apply for significantly large amounts of student financial aid, including student loans, to help pay for the rising cost of higher education.
Occasionally, these college students may be solicited by a third-party financial institution or bank that is offering student loan scams. These student loan scams can not only be easy to fall for, but notoriously hard to get out of.
Victims of student loan scams may suffer for years, paying off a high-interest loan while lowering their student loan credit rating. Protect yourself!
In this student financial aid guide, I will teach you the basics of learning how to avoid student loan scams. With this financial aid guidance, you can receive financial aid and school loans to pay for college without being scammed and victimized by student loan scammers.
The Student Loan Scam: The FAFSA
Fill out the Federal Application for Student Aid (FAFSA). If a company tries to sell you the FAFSA or charge you for filling it out, immediately report them to the authorities.
The FAFSA is available online for free from the official U.S. government financial aid website (link). You do not need to pay to receive or complete the FAFSA student loan form.
This federal student loan application is important because it is required of anyone who wants to be eligible to receive U.S. federal student aid such as Perkins or Stafford grants and loans. Be sure to complete and send in your FAFSA on time.
The Student Loan Scam: Not Knowing Your Financial Aid Eligibility
Contact your college’s financial aid department and find out your student standing at your university. Find out if you’re classified as a full time student or part time student.
Also, find out what they have listed as your major and minor or stream of study. These classification criteria are sometimes used to determine your eligibility for many different public and private scholarships and financial aid.
Some scammers may try to soliciit your private information by telling you that you’ve won a fake scholarship or fake student loan. Knowing your standing at your school can help you spot fake loans that wouldn’t even be elegibile for you!
The Student Financial Aid Scam: Fake Contact from a Bank
Be sure to only respond to student loan communication from recognized U.S. banks or loan companies. Don’t forget that all federal student loans are funded by the government and administered by banks.
Sometimes, you may receive loan letters in the mail from companies or banks that you are not familiar with. Never respond to such financial aid communication. If you ever have questions about your student loan, contact the company via telephone.