Student loan scam — Fake debt collectors reach out to students by telephone and email, offering a variety of ways to reduce or eliminate their debt, but there is a catch. The scammers want to be paid upfront before they start their work. Unfortunately, their “work” can leave the victims in even more debt and at serious risk of identity theft.Ask lots of questions – Time is on your side, so don’t make a snap decision to sign a contract or give out personal or financial information to someone you don’t know, unless you have done your research and are satisfied that they are on the level.
Never pay upfront fees – Legitimate lenders will take a percentage once their service is complete. Unethical lenders will use high pressure “today only” sales tactics and want money before providing any services.Beware of payment method restrictions – Steer clear of any business or individual demanding a non-traceable method of payment such as a cashier’s check or wire transfer.Get free debt management help – If you are in over your head, contact your lender to see if they can lower your payments or temporarily suspending them for a given amount of time.
