Buyer Beware: Student Loan Scams

by LBC Marketing

July 12, 2017

Posted in: Other

Recently, we received reports that LBC students have been targeted by fraudulent student loan companies. We wanted to make the LBC | Capital family aware of this concern and alert the community.

Have you seen ads for companies promising student loan forgiveness or quick and easy loan repayment? Beware! Here, we share 5 red flags from Nerd Wallet’s article on the subject so you don’t get scammed. 

1. You have to pay upfront or monthly fees to get help.

It’s illegal for companies to collect loan fees over the phone to pay off your loans. Instead, go to studentloans.gov to apply for free options.

2. The company promises immediate loan forgiveness.

Loan forgiveness does exist, but students need to know how to qualify for it – and loan repayment must continue. Contact your LBC | Capital Financial Aid adviser for more information.

3. A salesperson pressures you into signing up.

Regardless of what a salesperson might say on the phone, you do have plenty of time to make an educated decision about your finances. Don’t fall for their sales tactics.

4. You’re asked to share sensitive personal information.

Legitimate student loan agencies will not ask for your FAFSA ID and password. If you give out this information, it could result in ID theft or limited access to your student loan account. Make payments directly to your loan servicer and to your loan servicer alone – you don’t need a go-between.

5. The company advertises on social media or shows up in search engine ads.

Student loan assistance companies who advertise themselves should be immediately viewed with skepticism because they make profits from the ads.

If you come across anything that falls into these categories – suspicious phone calls, mail pieces, emails or online ads – contact your loan servicer or our financial aid office before divulging any information to them. Then, if you encounter a company will ill intent, file a complaint to the Consumer Financial Protection Bureau, the Federal Trade Commission and your state attorney general’s office. Remember – if it sounds too good to be true, it probably is.

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