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'Money: It's Personal' — Avoiding student loan scams

SAN ANTONIO – It's been almost two months since many college students turned their tassels and received their degrees, so many have student loan payments coming up soon. 

If you borrowed money from the Department of Education, you may still have a few months to get your finances together before you start paying that money back. 

You may come across websites online that promise fast loan forgiveness for a fee. A lot of times, scammers try to charge you for services that your loan provider can offer for free.  

RELATED: ‘Money: It’s Personal’ — Role of the Federal Trade Commission

Here are a few tips from the Federal Trade Commission on what to look out for to avoid falling victim to scams:

  • First, only scammers promise fast loan forgiveness. Call your loan service provider to learn the ways your loans can be forgiven.

  • Next, if a company asks you to pay a fee up front for help with your loans, do not give them any money. The Department of Education offers a variety of ways to help you figure out your loans for free.

  • You also want to look out for companies with fake government seals. Scammers use those to lure people in and take money from the innocent.

  • Finally, do not share your Federal Student Aid ID with anyone. This is private information that you should be using to access student loan information.

Remember to be cautious and do your research before giving out your personal information to any person or company.

For more information from the FTC, click here

“Money: It’s Personal” is a series on KSAT’s News at 9 that breaks down personal finance topics. If you have a suggestion or question on the types of topics you'd like us to explain, click here.

For more stories from KSAT's News at 9, visit KSAT.com/newsat9.


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