There Are Many College Money Scams To Stay Away From
Getting a College Degree can bring upon a huge amount of debt. There are enough of financial aid available for you to get funding for your college education, but be warned that there are also numerous college money scams around. These scammers are looking for any chances to cheat college students desperately seeking financial aid. You should be very careful when hunting for financial aid for college to avoid falling into the traps of college money scams.
The big money college scams are the Federal or personal loans scams, and the second scamare fake scholarships or free money that students don’t have to repay. Most recently, the scammers mail their offerings directly to students’ or parents’ homes, asking for money up front, this initial payment are supposedly to cover application processing fees. Reported by the Federal Trade Commission enquiry on financial support, scholarship or loan scams generally cheat people out of $50 to $1,000 when paying for these application fees. The results shows that over 100,000 families are being cheated each year and is still increasing. This situation may become worse due to today’s liquidity crisis, the college money scams may drastically increase because less lenders being in the market, and more students in need of financial assistance.
So, the question is how does one recognize a scam? Occasionally , it cab be tough to differentiate between the legitimate loan / scholarship suppliers than the scammers. Try and remember this, the rule of thumb is to avoid any offers that just appear too good to be true, and keep an eye out for words with misprints or businesses that don’t leave any contact info.
There are some college money scammers that mail letters on loans offers using letterheads that really look like the Department of Education. They fake the letterhead to make them look very real. In Truth the Department of Education never solicit consumers to loan offers, so any mail or email received from any government agency should be illegitimate and very well be a scam. Remember that, scholarships and grants should not carry any up front fees to you.
There are numerous ways to receive money for you or your children’s college education. Always be careful of college money scams, they are around to take your money. When you receive any money offers either loans, scholarships, or grants that look to be too good or have the above signs, just avoid them at all costs. Believe me, you will save a lot of head aches later on.
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Tagged with: college • college loans • college students • education • grants • scholarships • Student Loan • students
Filed under: Student Loan
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