Clear Talk About Loans

If you are a parent or student struggling to find a way to pay for higher education, you will inevitably come across a student loan scam or two. To make sure a scammer doesn't take advantage of you and your pocketbook, it is a good idea to learn how to recognize these scams for what they are.

Here are just a few of the most common student loan scams being perpetrated today:

Identity Theft Scams

As wonderful as the Internet is, it has opened the door for student loan scams. One of the most common student loans scams starts with an email that reads something like "One Chance Offer" or "Buy a Student Loan". The scammers usually don't deal in student loans at all. They are most likely trying to get access to your identity and banking information through an email virus. Such emails are better left unopened.

Buy Now, Pay Later Scams

People who perpetrate student loan scams know how expensive college can be, and how much financial stress tuition can cause on the family budget. This is why they try to lure people with buy now, pay later scams. The scammer will usually contact you via phone or mail, offering you the chance to purchase a low cost student loan several years before it will be needed. As soon as you pay the money, they pocket it, and you never hear from them again. Don't buy into this scam. Student loans should only be obtained in the year in which they are needed.

Consolidation Scams

Student loan scams can rear their ugly head at any time. One of the newest student loan scams, the advanced fee loan scam, preys upon overwhelmed students who are looking to consolidate their student loan debt. If you are ever asked to pay an upfront fee when consolidating student loans, the request should raise a red flag. Students should never have to pay an upfront fee to consolidate their loans.