Student loan scams are unfortunately common. Any sort of scam is distasteful, but it’s especially frustrating to see one that targets either young people just getting started in the world, or adults who have gone back to school and better themselves. Read on to learn about the common types of student loan scams, how to avoid them, and how to recover from being scammed.
A guaranteed student loan
The first kind of student loan scam is the guaranteed student loan. These are sometimes promoted as the “Obama student loan.” The scammers convince their victims that they can offer a guaranteed student loan, but they have to pay service fees to apply. They promise that the applicant will get their money back if they don’t get the loan, but they lied. The scammers disappear with the money, the student still doesn’t have a loan, and now they’re left wondering who they can trust.
Never trust a loan with a service fee. You do not need to pay to apply for student loans!
Student loan debt has become a huge problem in the United States. Most students leave school with debt, and it’s become a popular campaign promise to offer student loan forgiveness to all students, or those under a certain income threshold. This has created an opportunity for scammers to exploit more victims. Just like the guaranteed loans, they sometimes invoke Obama, creating the illusion that this is a legitimate government program. And just like the guaranteed loans, they tell you that all you have to do is pay a fee, which is much less than what you owe on your outstanding loans.
By the time you realize that there is no such forgiveness program, the thieves have disappeared with your money. You still have loans to pay off, and now you have less money to pay them with.
How do I avoid these scams?
In order to avoid falling for student loan scams, you have to know what they look like. Currently, there is no student loan forgiveness program, so anyone offering that is scamming you. Another red flag is if they offer you a guaranteed loan. Legitimate companies will always do a credit check before giving you any loan.
Before signing or agreeing to anything, it’s important to do your research. Try to get all the information about the company before you give them any money or confidential personal information.
I got scammed, what do I do?
If you fell victim to a student loan scam, you might feel hopeless. You may wonder if you will ever get your money back. And what will happen to your studies if you can’t secure a loan?
There are a few options for actions you can take after being scammed.
There are three options for a victim to a student loan scam. The first option is to go to the police who will open a fraud case against the fake company. This option will take a very long time, and you might not get your money back.
The second option is to sue the scammers yourself. But for this, you need to get a good lawyer, which will cost you a lot of money. And you might still not win the case and get your money back. It’s a hard case to win. Plus, being part of a lawsuit can be time-consuming and could distract you from your studies.
The third option, and perhaps the easiest for a student to pursue, is to contact Claim Justice. We are experienced at getting money back from scammers, and we can do all the hard work while you focus on your schooling.
To be able to take assistance from Claim Justice, there are a few requirements you need to meet.
You will need to provide us with all the transaction information. It has to be a credit/debit card deposit or a direct bank deposit, otherwise, we cannot trace your money.
You must also document all contact information between you and the agent. We need proof that you as a private citizen have tried to get your money back, with no success.
When you have provided everything requested, Claim Justice will start to fight for you and your case.