Top 5 Student Financial Aid Scams & Fraud to Watch Out for

It’s one of the thrilling instances in a younger grownup’s life – the possibility to go off to faculty on their very own. Students put numerous thought into selecting the best faculty, then start to look for methods to pay for and afford faculty. After all, the newest statistics present that it prices on common of $173, 282  for a four-year diploma at a non-public college.

Unfortunately, this thrilling time can flip right into a nightmare for college students, and their dad and mom, in the event that they’re caught up in one of many many faculty scholarship or scholar monetary assist scams which might be taking place now. In truth, in accordance to FinAid, customers lose about $100 million every year to monetary assist fraudsters.

But you don’t have to be a sufferer. Luckily, there are indicators of fraudulence to look for that can assist maintain your assist and scholarship efforts on monitor.

Here are 5 of the commonest scams, adopted by a couple of ideas to allow you to discover scholar assist the best means.

Scam # 1: High Pressure Seminars
This is a very nasty scam as a result of it preys on the concern of oldsters and college students who, in the event that they don’t settle for the assistance of the scammer, received’t have the ability to get monetary assist on their very own. It all begins when the coed receives an invite within the mail to a free seminar on how to get one of the best monetary assist.  During the presentation, “facts” are proven in regards to the difficulties of getting monetary assist which might be designed to scare the members. At the tip of the seminar, dad and mom are matched up with an adviser who proceeds to stress them into paying monumental charges to assist them discover the monetary assist they want. Sometimes these charges can run into the 1000’s. It’s comparable to the high-pressure techniques utilized by time-share salespeople. In this scam, although, the salespeople are enjoying on the fears and wishes of oldsters who simply need to present their little one a high quality schooling.

Scam #2: Wrong Websites
Submitting a FAFSA kind – the required paperwork to apply for scholar assist – merely requires a visit to the federal government’s web site (fafsa.ed.gov) and is totally free. But some artful folks have created web sites that make guests imagine they’ve to pay an application charge to submit the shape. Their web sites all have the phrase FAFSA on them and look official, even utilizing phrases like “foundation”, “federal”, “national” or “association.” Don’t be fooled – it doesn’t value something to submit an application for scholar assist.

Scam #3: Paying for Nothing
In the identical vein, different scammers cost folks to assist with the method of filling out and submitting the FAFSA application. They declare that it’s just too troublesome for the common particular person to do, and cost anyplace from $100 to $1,000 for help. Although it’s true that it’s a complicated course of and takes numerous time, it additionally requires the particular person filling out the application to be educated about personal particulars. Most usually, when you pay somebody to do it, they’ll merely ask you for the data, then fill within the blanks, getting a whole lot for little or no effort. At the worst finish of this scam are those that ask for the charge upfront, then merely disappear, by no means even filling out the shape.

Scam #4: The Phone Call
Some younger adults obtain telephone calls from callers giving the good information that they’ve received a faculty scholarship or have been awarded a grant. Other callers faux to be with the Department of Education and inform the coed that they’ve been chosen to obtain a grant that can handle all of their scholar loans. They then go on to inform the coed (or guardian) that they want their checking account data so as to deduct a processing charge. This is a scam. There is not any processing charge for a grant or scholarship, and the Department of Education doesn’t have a program to substitute loans with grants. The scammer will merely take money out of your checking account, by no means to be heard from once more.

Scam #5: Stealing Your Identity
Sometimes folks get letters within the mail telling them that they’ve been chosen to obtain scholar monetary assist or a scholarship. In order to accumulate, they’re instructed to name a quantity. Once they do, they’re informed that, after paying a small processing charge, they are going to be awarded the money.  However, these thieves are actually after your personal data. They’ll ask for social safety numbers, checking account data and driver’s license numbers. As quickly as they’re off the telephone, they’ll start taking steps to make you a sufferer of id theft.

What to Watch Out for

In addition to the above talked about scams, there are specific warning indicators that can provide you with a warning if somebody is making an attempt to pull a quick one.  If a company or group ever does any of this stuff in relation to scholar assist or a scholarship, you may make certain that you’re coping with a scammer.

Final Word

Scams are unhealthy usually, however after they goal youth who’re simply getting a begin in life, it appears even worse. If you may have a toddler preparing to go off to faculty, share this with them and control the sorts of assist they’re making use of for. It may very well be very important to their monetary future.

Do you may have a scam story, or are you aware of some other monetary assist scams that readers ought to keep away from? If so, I’d love for you to publish your feedback under

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