Student loans can be complicated, especially when there are so many options for financial aid and technical assistance available. Almost all students take loans to study further, which is why many of these students become victims of fraud and other scams. As reviewed by Educational experts at Education 2.0 Conference, there are way too many fraudsters out there exploiting students’ needs and robbing them of their hard-earned money.
How Do Education Loan Scams Work?
There are different types of student loan scams that work in different ways. Many scammers will claim to offer a service and charge a fee. They may take the form of a fee for consolidating your loans.
Let us take a more refined look at some of the obvious clues that an online education loan may be a scam and standard measures to avoid it:
- Loans reduced or immediate forgiveness for a fee – Who would not want their debts forgiven? But in reality, it rarely happens. When you borrow money, you always have to repay it with total interest. If a company is promising to negotiate a student education loan for debt settlement, it’s a scam. Beware of any such calls and reports to your concerned officials without delay.
- Requests for personal details – Government officials will not contact you and ask for personal information. Scammers, however, find this the opportune moment to fool you by asking you to confirm your details. They will try to make false promises of your loan settlement in exchange for your confidential information. If you find yourself in such kind of situation, disengage yourself.
- Present themselves as government officials – Scammers can fake government email addresses or even a government seal. But it is unlikely that you will be contacted directly by a government official with promises to eliminate education loan debt. As researchers at Education 2.0 Conference advised, do not call or reply to such emails and refrain from downloading any attachments.
- Demands third-party authorization – You should be wary if a company asks you to sign a “third-party authorization.” Written agreements give them legal permission to talk directly to your student loan provider and can make decisions on your behalf.
- Guarantees to remove debt from your credit report – Credit repair and debt settlement companies cannot remove debts you legally owe. Get your education loan debt validation in writing before proceeding.
Students’ education is imperative for growth and development. Education sets the course for success in life. But many of us can not afford the high fees of universities and colleges and hence look up to financial institutions and banks for education loans. With the rise of scams in education loans, it is essential to proceed with caution and always keep all of the above points in mind while applying for an education loan. This blog aims to equip you with all the necessary information you need to know to decide whether the education loan servicer is genuine or not. In case you need to know in detail about these issues, among others, you can always head on to the Education 2.0 Conference, where most renowned policymakers will discuss the acute problems in the education industry, tools, and practices that have the potential to redefine the learning environment in the future.