Young adults, often strapped with student debt, can be a scammer's most vulnerable population. Scammers are preying on college students and recent graduates by posing as private student loan services. Be wary of deceptive student loan practices with the following tips from the Federal Trade Commission and the Better Business Bureau:
1. The Department of Education does not send advertisements or mailers. If you receive a form of solicitation the company may be legitimate but is definitely not from the Department of Education.
2. Don't let incentives like prizes and gift cards divert you from assessing the terms of the loan and whether they are reasonable.
3. Do not give out personal information unless you for sure know with whom you are dealing. Though private student lenders do often need information such as your Social Security Number, scammers also want this information. Make sure you have confidence in the lender before providing personal information.
4. Do not pay upfront. Legitimate lenders take a percentage once their service is complete.
5. Never give a third party power of attorney. Do not sign anything allowing the lender to negotiate for you; this could give a potential scammer control over your loans.
Learn more about student loans at https://studentaid.ed.gov/sa/.
Lastly, you can check out the legitimacy of some student loan lenders using your local consumer protection agency or your state's Attorney General.
Stay Safe!