September 26, 2023
When paying for education, scammers are present in every step of the process.
Between student loan applications and debit relief, it is important for future, current, and past students to arm themselves against potential threats.
How it works
Scammers will make false promises, stating they can lower student loan debt, offer free money for a processing fee, or help consolidate loans. Scammers will make these claims through malicious online advertisements, cold calls, or phishing attempts. From there, victims are faced with possible identity theft, fraud, and monetary loss.
How to avoid the scam
- Be wary of and avoid any false promises.
- Use trusted sources to apply for loans, grants, scholarships, and debt forgiveness. Always use federal agency websites and reach out to your college admissions office for guidance.
- Do not pay up-front fees.
- Protect your digital identity. Enable multi-factor authentication wherever possible and reset your passwords so they are strong and varied.
- Guard your personal information. Do not provide it with unexpected requests. Verify the legitimacy of any requests.
- Report the scam to FTC.gov. Even if you don’t fall victim, you are helping others.