How to detect a Financial Aid Scam
Scam agencies might tend to adopt titles such as foundation, national, administration and federal this designations can easily fool both students and parents this is not to say that all agencies that use the titles mentioned above are fraudulent. To establish fake or scam agencies check for the following:
Payment for application forms
FAFSA, which stands for free application for federal student aid, is a financial aid form that is free and no financial aid service should demand or ask for payment for the application. People who have fallen for these scams have been asked to pay a fee for the FAFSA.
Financial aid guarantee
People often receive financial aid after successful application, though this might be true financial aid is not a guarantee by any chance. Agencies offering financial aid will by no means guarantee that you will receive the financial aid.
In the event that a financial aid agency or a website guarantees that you will receive financial aid or give you money back guarantees chances are high that it might be a financial aid scam and in most cases applicants end up losing money.
Most if not all-financial aid scammers will ask you to pay extra charges for redemption or for disbursement, after you have already paid them. In such an event you are advised to contact only licensed individuals or officials from the government mandated to handle cases relating to financial aid scam.
Loans and aids that bear extremely low interests rates should sound warning bells. Official and accredited financial aid agencies never ask for advance payment before a loan is given. You need to ensure that an accredited financial institution is issuing the loan, if the agency requests for advance payment then contact individuals licensed to deal with such scams and cases of fraud