How to Avoid Financial Aid and Student Loan Scams

Did you know, every year more than $100 million is lost because of scholarship scams? Over half of students who asked for private loans said they got a fake loan, says the Federal Trade Commission. 

Applying for financial aid or a scholarship should not cost you. If someone asks you to pay on a website, they are not connected to the U.S. Department of Education. Don't give them money. The American Bankers Association Foundation has a new infographic to help consumers avoid scholarship and student loan scams.

  1. Don’t ever pay a fee to get financial aid or apply for a scholarship.
  2. Fill out your own Free Application for Federal Student Aid (FAFSA).
  3. Never share your FSA ID or password with anyone (including companies or consultants).
  4. Never give personal information over the phone or internet unless you made the contact.
  5. Keep track of your receipts and documents. Store anything with personal information in a safe place.