Although we expect college graduates to be smart, they may not always make the smartest decisions as they enter into adulthood. Due to the recent student loan scams on the rise, young adults may be at higher risk for falling into the trap of internet scams regarding their student loans or financial aid.
As a result of the pandemic, unprecedented unemployment rates are staggering as young adults struggle to enter the workforce and secure a steady income to pay off their loans. Therefore, scammers see this as an opportunity to go after those who are vulnerable. Take a look at these tips to protect yourself or someone you know from falling victim to these student loan scams on the rise.
Be overly cautious
First, it’s crucial to be on high alert when receiving a call or email regarding your student loans. Just because someone claims to have your information, it doesn’t necessarily mean that they are a legitimate business. If you get a call regarding a loan relief program for which you haven’t heard of before or even applied to, you should just hang up the phone. However, if you are curious, you can let them know that you’ll call them back before you provide any of your personal information. This will allow you an opportunity to look into the organization’s title and legitimacy before saying anything that you might regret later.
Observe the source of the message
It is also advised to double-check the name and location of the company from which you are receiving the message from, as they may not even exist at all. Also be sure to check the address, website, or company reputation of any suspicious email or message.
Another red flag to keep an eye out for when you are charged with extra fees for a forgiveness loan. Real loan forgiveness programs will either cancel part or all of your student loan debt, but won’t typically charge a higher fee to do so.
Stay mindful of your personal & financial information
Last, but certainly not least, you should always be extremely careful when asked for your personal information or identification (i.e: Social Security, federal student aid identification, credit card or bank account information, etc). This type of information should not be given to anyone outside of reputable, trustworthy, and legitimate establishments.
So what should you do if you’re the victim of a scam or have any suspicions? Do not hesitate to act immediately and contact your bank directly. If a scammer has any of your personal financial information, your bank or credit card company must be contacted right away to lock your cards or stop any payments as soon as possible. Also be sure to check your bank statements for any suspicious or irregular activity. Get in touch with one of our Spinnaker financial experts today to discuss further safety measures for protecting yourself from the rising financial aid scams.
The information contained herein is based on internal research derived from various sources and does not purport to be statements of all material facts relating to the securities mentioned. The information contained herein, while not guaranteed as to the accuracy or completeness, has been obtained from sources we believe to be reliable. Opinions expressed herein are subject to change without notice.