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If you are in search of scholarships, student loans, or grants – beware! The scammers are on the lookout for vulnerable students. The more you know, the better you can protect yourself. Here are some common student loans and scholarship scams, and how you can avoid being a victim.
According to the GED, a Web-based resource for nonprofit college students seeking financial aid, victims of scholarship scams university lost $ 100 million annually to fraudsters posing as legitimate foundations grant, scholarship matching services, or government agencies. Here are three of the most common ways scammers use to lure students.
Grant: the application fee required
Any application promising results impressive scholarship that requires a fee should raise a red flag. Even if the fee seems nominal compared to the potential return, do not be fooled. The most common payment systems on application execution rate of anywhere between five and thirty-five U.S. dollars. Applicants fill out the application and send a check. The grant does not materialize and the check disappears. Even for a poor student, thirty-five dollars may seem a small loss. The scammers, however – Receiving between 5,000 and 10,000 applications to the race – "nominal" fees can add up to a large distance.
The Advance Fee Loan
Advance-Fee Loan is another common scam. In this game of bait and switch, scam artists posing as lenders, offering a package of loans for students with an incredibly low interest rate. The only hitch? Before the release, the lender requires you to send in a "conversion fee." Other lenders false may be asked to pay tax on their loan early. Do not be fooled. If you send a check off, it is unlikely to get anything in return.
You've won! Fake Scholarship Awards
Imagine this scenario: you open the mailbox during the day to find you've won a scholarship worth thousands dollars! It is true that you do not remember entering the contest, but you're very happy. As scanned by the fine print, you discover that a fee is required before disbursement you can collect the money. An uneasy feeling comes over you: the prize is important, no doubt, a modest price is no big deal, right? Wrong. Remember, the fees small, multiplied by thousands of victims, they can add a lot of money to the scammers.
Variations continuing. Some insurance companies or companies Financial intermediation alleged offer of aid seminars "" – in fact, nothing but fields of the shadow of insurance or investment products. Other scammers bill themselves as the scholarship search service and have money back guarantees. At best, you can send a list of classification scholarships – most likely going to take the money and run.
How to Protect Yourself
For now, you've probably noticed a common thread: if you have to pay for the money, it's probably a scam. The most legitimate, high quality services matching grants, for example, are usually free and available on the Web. Student Lenders reputable never require a fee to search for its implementation.
If you suspect something may be a scam, report it! If you're still in school, bear any suspicious scholarships or loan documents to the attention of a teacher or counselor. If you are an adult, you can file a complaint with the National Fraud Information Center (NFIC) or the Federal Trade Commission (FTC). Do not tell anyone to report to you: even cheating some success can make a profit for years before anyone catches on.
Legitimate Financial Aid
If you know where to look, you can find more than enough legitimate mechanisms for financing higher education. Check out the Federal Student Aid (FSA), for reliable of financial aid resources for college. An office of the U.S. Department of Education, FSA provided $ 83 billion in new aid of 10 million students higher education between 2007 and 2008. Among his most important services, the FSA can provide a Free Application for Federal Student Aid (FAFSA) form primary classification used for federal government assistance programs and commercial loan (FAFSA FSA processes 10 million each year).
In addition to federal loans, you may also qualify for federal grants. The grants are usually reserved for undergraduates, and are based on necessity. While the government has money, you may also be interested in a private loan. Just remember, when applying for a loan, make sure that banking is a legitimate lender with some form of recognition.
Ultimately, the best defenses against <a href="http://edu411.org/"> University </ a> Information on the loan and scholarship scams are good, common sense and clear thinking. Remember the basic rule: if something looks too good to be true, it probably is.
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Article Source: ArticlesBase.com – Let the Scholar Beware: College Scams and How to Spot Them
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