Since most college students are known for not having a lot of money, it would seem unwise for a thief to target them. Still, some people are willing to steal even from college students who are already strapped for cash. Thanks to lots of good press in recent years, the many benefits of student loan consolidation have been clearly presented. You can successfully avoid becoming involved in student loan consolidation fraud by using some common sense.
Student Loan Consolidation Fraud: Social Security Number Scam
One scam that people use to commit student loan consolidation fraud uses emails and phone calls that supposedly come from well established financial institutions. They contact students, claiming to work with student loans. They often ask for background information and sometimes are able to get names, phone numbers, and email addresses of students who have applied for student loans. These scams will ask you to verify their information with part of, if not all of, your social security number.
This scam is not new. For many years a similar scam has been spammed to countless email addresses, asking recipients to "contact our security department immediately". The emails these scammers use can look quite official. These tricks have worked before, most famously with PayPal and eBay users.
What to Watch Out For
Student loan consolidation scams also utilize emails, mailings, and phone calls that contain the following signs of fraud:
- Impossibly low interest rates
- Spelling and grammar errors
- Letters or emails written exclusively with capital letters
- The address of a company you have never contacted before
What to Do If You Have Been Scammed
The first thing you should do if you believe that you have been scammed by student loan consolidation fraud is to right down details regarding your interactions with the company. Then, contact your creditors and the Better Business Bureau so that they become aware of the scam.
