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5 Tips to Avoid Student Loan Scams

August 11, 2018

5 tips to avoid student loan scams

College is an important part of your education and your life. And it can get expensive. So it’s understandable that you might need some help to pay for it. But be careful! There are many scammers who target students with loan debt.

Here are tips to help you avoid these scams:

  1. Don’t give out personal info.  Scammers will often claim they can have your whole student loan debt “forgiven.” In exchange, they’ll want you to hand over your Social Security number and other personal information. Never give your personal information out over the phone or on an unsecured website.
  2. Consider the source. Did you see an ad for this service online? Did the ad have the President’s picture and a lot of exclamation points? Then it’s probably not a reputable company. Several scammers are claiming they can get relief for borrowers under a “federal loan forgiveness program.” This is not a real program.
  3. Never pay up front. Student loan scammers want you to pay big fees before they’ll help you. A reputable loan relief company won’t charge you without knowing your situation and without helping you reach a payment plan with your lender.

  4. They can’t make your debt go away. It’s very rare for a borrower to have loans forgiven outright. Only scammers make that kind of big promise.
  5. Don’t let them pressure you. Only scammers will threaten you with missing out on help if you don’t respond (or pay) immediately to accept their services.

So how can you find out your options for repaying student loan debt? Our partners at GreenPath Financial Wellness have put together a helpful guide about your repayment options.

Need options for student loans? Shop around. Ask questions. An honest lender won’t mind answering them. Credit unions often offer lower-rate student loans than banks or other lenders. Plus, credit unions offer checkingsavings, and other resources to get you started on a bright financial future.

This article should not be considered legal, tax, or financial advice. You may wish to consult a tax or financial advisor about your individual financial situation.

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