Fraud Prevention Series: Student Loan Services & Fraud
May 9, 2023
Whether you’re applying for financial aid to help pay for your degree or working to pay down student loan debt, there are a number of tactics that scammers will use to try and steal your personal and financial information. Here’s how to look out for potential scams and keep your identity and finances safe while navigating student loan services.
Fraudsters and cyber criminals will prey on just about anyone, including college students and graduates. The most important aspect in defending yourself against student loan fraud is being aware of potential red flags. There are signs that can help you determine if the source can be trusted or not.
Asking for Personal Information
Being unexpectedly asked for sensitive or personal information regarding your student loans can be a major sign of fraud. Often, scammers will ask for this information over unsolicited texts, emails, phone calls, or even social media – this is commonly referred to as phishing. Just because trusted student loan servicers or private lenders store sensitive material, does not mean they will send a message or call asking for your personal information.
Next, look for signs of urgency. This could include a text message that is pressuring you to click a link, scare you with a problem concerning your account, or tempt you with a promise of reducing or wiping out your student loans. If it seems too good to be true, it probably is.
If you receive a suspicious call, email, or text message from someone claiming to be from your student loan provider, it’s important to notify the provider being impersonated immediately.
Asking for Payment Information
You will never have to provide a credit card number or checking account information for financial aid application fees, such as FAFSA (Free Application for Federal Student Aid), or to qualify for student loan forgiveness programs. According to earnest.com, federal student loans do usually have fees, though usually these are deducted from your first disbursement – or the first student loan payment made on your behalf. You should never have to pay upfront fees by other methods.
Protect Your Personal Information
Being proactive is the best defense against fraudsters and cyber criminals. Always use strong passwords and consider enabling two-factor authentication for additional account security if possible. However, if you suspect that you may have fallen victim to a student loan scam, you’ll want to act quickly.
The U.S. Department of Education recommends to start with contacting your loan servicer to let them know about the situation. You may also want to contact credit reporting agencies to put a freeze on your accounts so no one can open new credit accounts in your name.
It’s also important to contact your financial institution or credit card issuer. They can help you lock debit and credit cards to prevent them from being used, reissue new cards, and help you monitor your accounts for any fraudulent activity.
Reminder: OU Credit Union will never call you asking for personal or sensitive information. Please notify us if you receive a suspicious call, email, or text message from someone claiming to be from OU Credit Union. For more tips to recognize fraud, visit oucreditunion.org/securitycenter.
Tags: Fraud Prevention Series, Tips and Tricks