Outlook Money
Securing funding for higher education is crucial, but it can attract fraudsters who rely on students' urgency. Identifying common education loan scams might help you avoid losing money.
1. Advance Fee for Loan: Scammers frequently ask for an advance charge to handle a loan application claiming speedy approval or minimum paperwork. Genuine lenders never seek payment before loan disbursement. Be cautious of such requests.
2. Guaranteed Approval: Any offer of guaranteed loan approval without a thorough credit and background check is likely a scam. Real lenders evaluate your financial history and loan application carefully before approval.
3. Debt Elimination: Some fraudsters claim they can eliminate your education loan debt for a fee. Such promises are false. Only your original lender has the authority to modify or forgive loan terms.
4. Scholarship Scam: Scammers may offer scholarships in exchange for a fee. Authentic scholarships are awarded based on merit and do not require payment. Always verify scholarship offers through legitimate sources.
5. Loan Forgiveness: Fraudsters might pose as representatives from your lender, offering loan forgiveness for a fee. Legitimate loan forgiveness programs do not require additional payments. Consult your lender for any forgiveness options.
Compiled By Manas Malhotra