Be Aware! Financial Aid Scams

I have talked a lot about resources that will help you find additional financial assistance for college, but I feel that I should also warn you against some of the dangers of looking for financial aid on your own, specifically financial aid scams. Yes, there are people out there so low as to take money from people already desperately searching for money to fund their college education. Each year, hundreds of thousands of college students and their families fall victim to these scams. This is a serious problem, especially for those new to the financial aid process and searching for additional resources. In this post, I hope to help you be able to tell the difference between a genuine financial aid help source and a scam. 

1. Financial aid agencies do not ask for a fee for their services. If you come across a program or agency that asks for a fee, do not give any money and do not give them your credit card number or bank account number. If you have to pay money to receive money, it's a scam.
2. Most people who apply for financial aid receive some kind of help in one form or another, but it isn't guaranteed. If a program or agency states that you will receive financial aid guaranteed or your money back, don't give them money. 
3. If you hear of any seminars that will be discussing financial aid tips, be wary. Most of these seminars charge a fee to go, and most of them are not done by real financial aid agencies. Instead they are done by insurance companies and other companies that have over-priced items they will try to sell you. Do not pay for these seminars and do not buy their products. 
4. If you find a loan with a very low interest rate, don't get too excited. Check to see if they charge an advance-fee loan. Official loans don't charge people a fee before they receive the loan. Check to see if the lender is a recognizable government agency or private organization. If an agency asks for an advance-fee loan, don't pay it and don't accept it. 

If you see any one of these characteristics on a financial aid help source, don’t give any private identity information, don’t give them any money or credit card numbers, and legally, you might be obliged to report any suspicious looking financial aid help sources to the appropriate government officials or law enforcement. There are many more people out there will fall victim to financial aid scams and their college dreams and goals might be taken with their money. If you come across something suspicious, report it and save someone else from being scammed. Be safe and careful in your own search for financial aid. For additional information and help, click here.