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When a student needs funds, student loan can be the fastest solution. It is widely available from many creditors. However, few (if any) students are satisfied with their student loan. Worse, many of them finally found that they had been deceived by student loan scam. However, when the students needed quick money, rarely did they can identify the scam.

The debt companies can neatly package the loan schemes. As a result, it may be very difficult to identify the scam behind them. Then, the students will find many problems with the loan, including hidden fees, hidden rates, and difficulty for loan repayment. The scams may also come in the form of personal information misuse, high fees, and misleading claims.

Tips to Identify Student Loan Scam

Are you a student that needs quick money? That is fine if you think that student loan is a solution. However, to avoid unwanted things, which may run your wallet in the future, the following are some smart tips to avoid student loan scam.

Tips 1 : Stay Away from ‘Too Easy” Loan Approval

When you need money, you certainly look for loan with quick approval. However, when it is to easy and involving very few requirements, better find another option. If the loan sounds to good to be true, it may be scam. Do not be misled by a loan offer, for which you are pre-qualified.

A company logically checks your income and financial condition before deciding that you are qualified or not. For this, you have to submit your personal information. However, when you are qualified before the administrative phase, something could go wrong behind it.

Tips 2 : High Application Fees

Applying for student loan does not require you to pay any single dollar. It is always free. Student loan servicer is available to help you, free of charge. Therefore, stay away from a company that charges you high fees from application to approval stage. Sometimes, the company does not explain what the fee is used for. Sometimes, the fees come in different name, such as administrative fees, survey fees, consulting fee, and so on.

Tips 3 : Do not be Intimidated by the Salesperson

Have you been visited by a loan salesperson, which tells you that it is a loss if you do not apply for a specific loan program. He/she may say that you have to apply for the loan, as it is available only for few days. The truth is that you have an absolute right to decide whether to apply for a loan or not. In addition, the salesperson may call you repeatedly, insisting that you have to take the loan.

Tips 4 : Know the Official Student Loan Program

A salesperson may come to you and tell that the government is launching a new student loan program with fewer requirement and simpler process. The companies may also claim that they affiliate with the Education Department and are the official agency to manage the student loan program. The truth is: the government only works with deb collectors and student loan services.

Paying your student loan on time is important to build your credit record. If you fail to pay it on time, it will be more difficult for you to get another loan in the future. Therefore, make sure that you are not dealing with student loan scam, which can ruin your financial condition.

Source <> http://fxdailyreport.com/4-smart-tips-avoid-student-loan-scam/

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