Even the smartest students can fall for student loan scams.
After all, there’s no doubt about it: proper college education in the US is expensive. Students are often left with no choice but to be saddled with massive student loans, that quickly become inescapable financial issues.
Then, sly and immoral companies add salt to the wound by crafting scams that target desperate students. And if you think you can’t be fooled — think again. These companies can be very convincing in their tactics!
It’s essential to be able to separate scam companies from legitimate enterprises so your money can be far better spent on opportunities like studying abroad.
To protect yourself, check out the common student loan scams below and some tips on how to avoid them.
Common Student Loan Scams
Scammers deploy the below tactics to prey on students whose desperation to ease their student debt can cause them to make regrettable decisions.
Here are some of the most common student loan scams that you may encounter.
Upfront Fee Scam
In this scam, a debt relief company will lure you in by offering to negotiate better interest rates or repayment terms on your student loans for you. They may even propose consolidating all your loans so you can make a single repayment each month. Sounds nice, right? There’s only one catch: you need to pay an upfront fee.
While the company may deliver on its promise, it can also take the cash and run. That’s why it’s illegal in the US for a debt…
