Avoiding Common College Scams

College is a whirlwind of new experiences, from academics and social life to newfound independence. But amidst the excitement, students can also be targets for scams that prey on their desire for convenience, financial anxieties, and limited experience. Here are some common scams and tips to help protect you:

Fake Financial Aid Assistance or Forgiveness: 

• The Scam: Companies lure you in with promises of reducing your student loan debt for a steep upfront fee.  
• The Fix: The Department of Education offers free loan consolidation and repayment resources. Don’t be pressured into paying for help you can get for free. Be wary of companies or individuals who offer these services for a steep upfront fee or those guaranteeing unrealistic outcomes.  

Grant Scams:

• The Scam: Scammers call, text, email, or contact you through social media offering grants backed by the government. They make big promises and state the money is free and claim you do not have to pay it back. They disguise themselves as calling from a government agency to make them appear legitimate.
• The Fix: Offers of free money from government grants are scams. The only place to find a list of available federal grants is https://grants.gov. No government agency will contact you demanding you pay a fee for a grant nor will they ask you to pay through wire, gift card, or cryptocurrency. 

Textbook Traps:

• The Scam: Deceptive websites offer textbooks at low prices but these deals can be risky as you may receive a pirated or damaged book, or sometimes nothing at all. 
• The Fix: Check your school’s bookstore as they may offer sales prices. Consider buying used books from classmates or reputable online platforms with buyer protection guarantees. 

Fake Apartment Offers:

• The Scam: Crafty online listings offer amazing apartments at low prices, often before the semester starts. You send a deposit to sure the place only to discover it’s unavailable or doesn’t even exist.
• The Fix: Never send money for an apartment that you have not seen in person. Verify the ownership information and look for red flags like low-quality photos of the apartment or generic descriptions. 

Job Scams:

• The Scam: Job ads that offer flexible schedules and easy money but require an upfront fee or ask for your bank account information. 
• The Fix: Legitimate jobs do not ask you for an upfront fee or ask for your banking information during the application process. Research the company and be wary of offers that seem to good to be true. 

Your School’s Resources:

• The Office of Financial Aid: This office is loaded with information on scholarships, grants, and financial literacy. They can advise you on legitimate financial aid options and help you spot scams. 
• Public Safety: Campus security is trained to identify and prevent fraud. They can assist in helping you identify scams as well as offering workshops or presentations on financial security and campus security.

Your Fraud Prevention Strategy:

• Be careful what you post about yourself online, including your date of birth, address or cell phone number. 
• Think before you click: Don’t open any suspicious emails and/or texts or click on unknown links. 
• Verify, Verify, Verify: Verify emails, texts, or calls by contacting the claimed source directly through a verified phone number or website. 
• Don’t share personal information: Avoid sharing sensitive details like bank accounts or personal identifying information (social security numbers, dates of birth, FSA ID & passwords) online or over the phone. 
• If it Sounds Too Good to Be True….It probably is! Be cautious of offers that seem too easy or ask for upfront fees. Trust your instincts!
• Report Suspicious Activity: Inform your school’s financial aid office, public safety department, or the Federal Trade Commission (https://reportfraud.ftc.gov) about any suspected scams.