How to Avoid Student Loan Scams

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 Elegibility

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.