4 Signs You Are Dealing With Student Loan Scammers

Posted by CapWay in Student LoansJune 13, 2019(Last Updated January 3, 2023)2 min read
Key Takeaways
  • It is reported that millennials owe about $1.5 trillion in student loans.
  • Scheming companies try to make a quick buck off people who are desperate for options to pay back their student loans.​
  • The federal government allows you to enroll in affordable repayment plans and apply for student loan forgiveness for free.
Are you ready to make some real money moves?

It is reported that millennials owe about $1.5 trillion in student loans. Scheming companies see this as an opportunity to make a quick buck off people who are desperate for options.​

Here are four signs that you are dealing with a scam:

 

Pay Upfront or Make Monthly Payments

 

If you are asked to pay upfront or commit to a monthly fee, it is a sign that you're dealing with a company that wants to make money off you. The federal government allows you to enroll in affordable repayment plans and apply for loan forgiveness for free. 

 

The U.S. Department of Ed offers resources on affordable federal repayment plans.  

 

Recommended Read: The Starter Guide to Pay Back Your Student Loan Debt

 

Request Personal Information

 

Companies will ask for your Social Security number or federal loan login (FSA ID) so that they can make decisions on your behalf regarding your loans. They then take your login and complete forms that you could have done on your own for free. You should always be careful of sharing your Social Security number and giving a third party the right to make decisions on your behalf.

Person shocked looking at computer.

 

Recommended Read: How to Protect Your Email Account and Personal Information

 

Promise Immediate Student Loan Forgiveness

 

Although it sounds good, there are no easy loan forgiveness solutions. Federal forgiveness programs take anywhere from 5-10 years of payments before your balance can be forgiven. Any company that tells you that you can pay and receive immediate forgiveness is definitely bending the truth.

 

Recommended Read: How to Pay for Your College Education with Scholarships

 

Apply Pressure

 

Time is the enemy of any type of scam. The goal of a shady salesman is to get you to commit as soon as possible and collect their money. Many of these companies will tell you that the offer is limited because a law or program is discontinuing soon.

Was this content helpful?
Comments (0)

Sign In to leave a comment.

Download the CapWay App

Access more features to your Money Account

  • Money Goals
  • Request Money
  • Categorize Spending
  • Money Talk

The CapWay, Inc Debit Visa Card is issued by Metropolitan Commercial Bank (Member FDIC) pursuant to a license from Visa U.S.A. Inc. “Metropolitan Commercial Bank” and “Metropolitan” are registered trademarks of Metropolitan Commercial Bank ©2014.

1. For Money Account holders with a negative balance, the CapWay debit card will go into freeze until funds are deposited to bring account back to current. See terms and conditions

2. Sending or receiving money from other CapWay account holders will be instant. Transfers from other accounts could take up to 48 hours, depending on the financial institution.

3. Early access to funds requires direct deposit. Early payment is not guaranteed and is dependent on the timing of payer's submission of deposits. We generally post such deposits on the day they are received which may be up to 2 days earlier than the payer's scheduled payment date.

4. Money Goals allows account holders to save money towards financial goals created within the CapWay platform. Funds can be transferred from your Money Account or saved through the rounding up of your transactions from purchases.

5. CapWay offers financial content through Learn Money free of charge, but may include advertisements through affiliates. Phunds, CapWay's literacy program and session, is paid content or co-branded content.

© 2019-2024 CapWay Inc. All Rights Reserved.