Unfortunately, student loan scams are out there. They target people who are already struggling financially and make their situations much more difficult. If you are looking for student loan protection in Bergen and Passaic County, we can help you.
One of the best ways to protect yourself from student loan scams is to stay informed. If you already know what suspicious activities to watch out for, then you will be able to avoid anything that sets off a red flag for you.
This article will teach you how to avoid fraudulent student loan activity and what to do if you have already sent your information to a suspected scam. Let’s get started.
How do Student Loans Work?
Knowing how student loans work is important in determining if you want to take one out in your name. This will let you determine if a student loan is worth it for you.
These loans come from one of two places; either the government or a private group (such as Sallie Mae) will lend you a large sum of money to use while you are in college. The student loan is expected to be paid back slowly after you graduate, however, you also need to pay off the interest that the loan gathers.
Private student loans are always more expensive due to their higher interest rates. You will end up paying a lot more back if you take out private loans. Your best option is to get as much money out of student aid, scholarships, and federal loans as you can before you even consider taking out a private loan.
So are student loans worth it? It depends on your situation and how much you are willing to spend (and pay in interest) to get a higher education. However, taking out a student loan from a private group is risky. We offer student loans in Bergen and Passaic Counties and will ensure that you are taught everything you need to know about taking one out. This ensures you have a full understanding of exactly what your specific student loan entails including the amount you will be paying in interest and how large your monthly payments will be. At Greater Alliance we offer affordable private student loans and refinance student loans with low variable or fixed rate terms. Contact us today at 888-549-9050.
What to Watch Out For
Companies should never ask you to pay for their help with federal student loans or financial aid. When they ask for money, this could be a sign that they are going to try to scam you. You will never have to pay for information on student loan forgiveness or finding school aid through the federal government.
Serious groups will also never ask for your bank account information or a credit/debit card number. If you give them this information, your accounts could be compromised and you might be putting yourself at risk of identity theft.
Also keep an eye out for documents with spelling errors, strange capitalization, and incorrect use of grammar. These are signs that the company, no matter how official their site or documents appear, is not associated with education officials.
Never Pay for Help With FAFSA
All students are required to fill out the FAFSA (Free Application for Federal Student Aid). It is there to determine what student aid and benefits you are eligible for. These days, many sites offer help with filling the form, but they offer this help for a fee.
These sites are not endorsed by the Department of Education. You will never need to pay to file your FAFSA forms. Your college will have some kind of financial aid office to provide you with free assistance in filling out the forms. Plus, they can give you a lot of useful information about how you can receive more free aid.
Never Pay for Help With Federal Loans
Student loan debt relief groups charge you money for services that are free. If you are struggling with your federal student loans, all you need to do is contact the loan servicer directly. The government can help you adjust your payment plan, lower monthly charges, and more all for free.
Student loan protection by the state is in place to keep your identity safe. Never use third party sites to fill out federal loans. Always go directly through the official routes so you receive these protections.
How to Report Fraud
If you think you might have already experienced a student loan scam, you are going to want to report it right away. This will help protect your identity from being stolen and save others who might not realize they were scammed.
Report fraud and scams to the Federal Trade Commission and the Consumer Financial Protection Bureau. These professional groups know what steps to take to remove these frauds and even help you get back some of your money.
How to Report Identity Theft
If you gave out your student account information, change the password right away if you still can. Your school can help you get back into your account if you are unable to access it.
If you know that your information is in the wrong hands, you will want to take the steps to protect yourself right away. Contact the Federal Trade Commission or the ED’s Office of Inspector General to report identity theft. They will let you know what else you can do to get your information back.
Finally, contact your loan services to ensure that no one else has the power to make decisions for you. The last thing that you would want to happen is to have a stranger taking out student loans using your name then using the money for who knows what. When you contact the student loan servicer also be sure to check that any actions taken were taken by you.
Student loans and student loan scams are a worry for many students, so you do not need to feel alone in this. We offer protection and can help you if you are struggling. Contact us today and we will guide you through the exact ways we can help you with your unique situation.
Remember, if you believe you are a victim of fraudulent activity, be sure to start taking the steps right away to protect yourself.