Top 5 Warning Signs of Student Loan Scams
- Fraud Watch
- Frontwave Credit Union
You’re Contacted Out of the BlueIf someone contacts you out of the blue and claims to be from the government, your loan servicer, or a nonprofit organization, be careful. They might be trying to get you to share your personal information or get you to sign up for a fake service. Don’t give them any details about your loans, your bank account, or your FSA ID (your username and password for StudentAid.gov). Always verify the identity of the caller or the sender before you respond.
You’re Offered Immediate or Total Loan ForgivenessUnfortunately, there’s no such thing as a magic solution to get rid of your student debt. The only legitimate programs that can forgive your loans are offered by the Department of Education. Keep in mind you can’t just pay someone a fee and make your loans to disappear.
You’re Asked to Pay an Upfront FeeIf someone asks you to pay an upfront or monthly fee for their service, it’s likely a scam. You don’t need to pay anyone to help you with your federal student loans. You can apply for loan consolidation, income-driven repayment plans, deferment, forbearance, and forgiveness for free through your loan servicer. If you need help with your private loans, contact your lender directly and ask about your options.
You’re Pressured to Act NowScammers often pressure you to act now or make promises that seem too good to be true. They often use fear tactics or false urgency to get you to sign up for their service. They might say things like “This offer expires soon” or “You’re eligible for a special program”. Don’t fall for it. Take your time and do your research before you agree to anything. Compare different offers from reputable sources and check their reviews and ratings.
Errors on Websites or CommunicationPoor grammar and spelling errors in emails or on a website are a tell-tale sign of a scam. Scammers often make mistakes in their communication that reveal their lack of professionalism and credibility. Look out for any unusual capitalization, improper grammar or punctuation, or incomplete sentences. Also, check the URL of the website and make sure it starts with “https” and has a padlock icon. This indicates that the site is secure and encrypted.
If you think you’ve encountered a student loan scam or have fallen victim to one, report it as soon as possible. Contact the Federal Trade Commission (FTC) and your loan servicer directly. You should also monitor your credit report regularly and look for any unauthorized activity related to your student loans.
At Frontwave Credit Union, we care about your financial well-being and success. We know that paying off your student loans can be challenging, but we’re here to support you along the way. We offer competitive rates, flexible terms, and personalized service on our personal loans. We also provide free financial education and counseling to help you manage your money wisely. If you have any questions or concerns about applying for a loan with us, please contact us at 800-736-4500 or visit one of our branches.