College Loan Scams

If you are in college, then the word loan sounds quite lucrative. Isn’t it? These days the banks and other financial institutions are getting into a lot of action in the college loan segments. Just as it is beneficial for students in need of educational loan, similarly it affects them, when they fall under the false grip of college scams. But you need to identify the right institutions that provide you with authentic college loans.

Just when you complete your high school and move towards the threshold of college, your mailbox will be filled with all types of mails enticing you to take attractive college loans. Most of these institutions are fake and involved in college scams. These fraudulent offers might look highly attractive. But to ward off these offers and choose the right ones, you need to be a smart consumer. Do not opt for loans that promise you with no repayment in cash or kind, for it might be a type of college scams. Some of the institutions often tell that free loan is allowed because every year millions of money remains un-used. This fact is false as all real-loan-money institutions receive money from Federal Government or from individual colleges.

Here are some of the ways that you can detect the truth or falsity behind the college loan story. If the institutions promise money in return of money, it may be a college scams issue. Remember for these loans you just have to spend money for a postage stamp and nothing more. Sometimes the institutions might ask for upfront fees that will be arranged to look like prizes. They will just ask you to pay a certain amount as fee to get your prizes. Some college scams might even offer loans at very low interest than the usual interest rate charged by institutions. Remember education loans never require any upfront fee or will never offer loans at an interest rate than the usual interest rate of 8.5% [approx].