Student loans

TECH TUESDAY: Avoiding Student Loan Scams

LANSING, Mich. (WLNS) — The pause on student loans gives people more time to prepare for repayment plans, but it also gives scammers more opportunities to find victims.

Whether by phone or email, search for victims that you can take advantage of during the student loan break.

The other thing? Scammers don’t care if you graduated or are still a student.

“They actually do a lot of offers where they say ‘We’ll get you into an institution, we can help you get scholarships, let us help you fill out the FAFSA, but it’s all chargeable,'” Mary said. Jo Terry, Managing Partner at YREFY.

All federal programs that help you access scholarships, complete the FAFSA, and enroll in an institution are free.

The main place to access documents that will help people with student loan information, or the FAFSA, is at studentaid.gov.

“Every college and university has a financial aid office that will be happy to schedule time and an admissions office if you need help with admissions,” Terry continued.

As college decision time for many approaches, loan forgiveness is a very important topic right now.

Mary Jo says that in Michigan, we have an average of $76,000 in student loans.

So do your research before sharing your credit card number, bank account information, or personal information with companies that seem too good to be true.

“All federal documentation to reduce your payment, to put you on probation, to do anything with your student loan is free. Completely free.”

Scams these days can be hard to spot.

“We see people building websites. We see companies spoofing a legitimate company’s 800 number. So a legitimate 800 number could be with any of the major lenders,” Terry said.

So be careful.

“They hit you where your wallet is, unfortunately.”