Introduction to Student Loan Scams:
With the onset of the new year, many of you might be planning to go abroad for studies or enroll yourself in one of the top universities in your country. Whatever your call might be, student loans are always a popular choice for everyone. However, this era has seen scammers in almost all industries. Upon receiving a lot of complaints regarding student loan scams, we decided to discuss with our readers the different kinds of student loan scams and how you can avoid them before it’s too late. If you have had such an experience with student loan scams, make sure to share your experience with us in the comments below.
What are the different types of Student Loan Scams?
There are various kinds of Student Loan Scams in the market, here are a few of them:
TAKING FEE FOR FREE FORMS
One of the main ways through which student loan scammers lure money from people is by charging fees for filling or providing free forms. If the student has to decrease or increase their monthly back payment as per their income level, they are supposed to fill a form. Many firms assist the students in doing so. Although many people opt for paying a fee in return for filling the forms, some might not be aware that the forms are free and this is where the scammers take advantage of their innocence and charge them money for nothing.
ELIMINATING LOAN FOR A FEE
Another common way through which the scammers fool the people is by providing them with an offer that their student loans can be waived off if they fill some forms and deposit a considerably large amount of money. As you all might already know, loans can never be waived off like that unless you pay back all the money along with the interest generated. However, lured in by the offer, many people fall into this trap.
STEALING PERSONAL DETAILS
Other than money, the major target of the scammers is the personal details of an individual. These personal details are later on used to impersonate, steal money from the banks or sell on the dark web. The scammers will usually pretend to be an official calling from the bank that you have taken a loan from and request for personal details necessary for some procedure.
How can you avoid Student Loan Scams?
In order to avoid Student Loan Scams, one must follow the following steps:
- Never provide your personal information through calls or emails, always go in person and provide them.
- Do thorough research about every aspect before applying for a Student Loan.
- Only take loans from registered and legitimate organizations.
- Do not fall for companies that promise less interest rates than market rates.
Conclusion: Are Student Loan Scams real?
However shocking this may sound, Student Loan Scams are real and can happen to you as well. In order to stay protected from Student Loan Scams, just follow the steps to avoid one and keep reading our articles.
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