How to avoid College money scams

There are many financial aid available for you to obtain financing for their education, but be aware that there are also many college money scams around who are looking for opportunities to cheat your money. You should be careful when searching for financial aid to avoid falling into traps College money scams.

In General, College money scams come in two forms. For the first time it blows federal loans or private, and the second scam related scholarships or the free money offer students without the need to pay back.Frequently, the blows of mail your offers loans directly to the homes of students or parents, demanding money early, usually they will ask you to pay some forms of processing fees before they pay off the bottom. whereas the scholarship scams mail or email your offer for you to tell you that you won a scholarship or were offered with some amount of scholarships, and you need to secure it as soon as possible if you would like to accept the offer by paying some initial rate.

According to research from The Federal Trade Commission on cons of financial aid, scholarship or loan scams typically cheat individuals from $ 50 to $ 1000 in terms of initial fee without offering any financial aid applicants. survey results show that over 100 thousand families are being swindled out every year and on the rise. The situation could become worse due to today's credit crisis, the College money scams may make use of creditors less on the market and more families need financial aid for college study of children.

So how do you recognize a scam? sometimes is difficult to differentiate between providers loan/scholarship legitimate than those crooks, but try to avoid any offer that sounds too good to be true and watch out for the letters with misspellings or companies that provide no contact information.Here are specific college money scams to be aware of:

Loan Fraud:

1. the money scams send letters about College loans offers using letterhead that look much like the Department of education. They false letterhead of legitimate businesses, to make them look legitimate. the fact is that the Department of education does not require consumers to borrow money, so any email received from the Ministry of education needs to be illegitimate and is definitely a scam money from college.

2. you can also receive letters, providing you with federal or private loans, but in order to guarantee the money, you need to pay a processing fee of the service or application.The problem is that a legitimate offer not ask him to pay the initial fee.The general rule, any offer that requires you to pay the initial fee and then you must be very careful to watch out for the possible scams.

Scholarship Scams:

1. you may seen ads claiming that there are millions of dollars in scholarships go unused each year, you are guaranteed to protect a portion of this money with a small fee. This is one of the most common scams money college that attract victims to pay the fee because the offer comes with guaranteed cash, but in reality it is not.

2. Another common trick of scholarships is called "Nigerian Scam" cheaters send a cheque with a large amount of that offer scholarships. then they will ask to send back the difference between what was received and the original amount promised immediate. you must not send back the money if you managed to withdraw the check you received.

Summary

There are many ways to get funding for your or your child's education, but remember College money scams are about cheat your money when you receive an offer of a loan or scholarship that seem too good or above, you should put yourself in highly alert to potential scams money from college.