HARRISBURG — The Pennsylvania Higher Education Assistance Agency (PHEAA) is warning students and borrowers to be wary of financial aid scams that could expose them to identity theft and significant financial loss.
In one recent example, scammers are fraudulently representing themselves as known student loan servicers through social media in order to obtain personal information by claiming that a student is “eligible” for total student loan forgiveness.
The most effective way to avoid becoming the victim of a scam is to be alert and vigilant when asked to provide any form of personal information or when engaging in financial transactions. Recent scams include: student loan forgiveness, tuition scams regarding late payments and unnecessary fees for service, such as for an application or scholarship — things students can typically access for free elsewhere.
There are several steps you can take to protect yourself from fraud and scams. The Consumer Financial Protection Bureau (CFPB) recommends the following tips to avoid scams: don’t share your Social Security number, credit card information, or account passwords; never pay up front for a promised prize. It’s a scam if you are told that you must pay fees or taxes to receive a prize or other financial windfall; after hearing a sales pitch, take the time to compare prices. Ask for information in writing and read it carefully; ask yourself why someone is trying so hard to give you a “great deal.” If it sounds too good to be true, it probably is; watch out for deals that are only “good today” and pressure you to act quickly. Walk away from high-pressure sales tactics that don’t allow you time to read a contract or get legal advice before signing. Also, don’t fall for the sales pitch that says you need to pay immediately, for example by wiring the money or sending it by courier and finally put your number on the National Do Not Call Registry. Go to www.donotcall.gov or call 888-382-1222.
If you believe that you have been targeted or victimized by a scam, please contact the Pennsylvania Department of Banking and Securities, the CFPB, or the Federal Trade Commission (FTC).
