Aug. 9, 2018
Contact: Ron Leix, Treasury, 517-335-2167
Be Informed and Understand Terms When Applying For and Accepting Loans and Scholarships
LANSING, Mich. – As Michiganders
prepare for the upcoming fall semester and pay their college tuition bills, the
Michigan Department of Treasury’s MI Student Aid Team is asking students and
their families to be alert and informed when being offered financial assistance
in the forms of loans and scholarships.
“Students must be very careful when being solicited for
assistance with their financial decisions, especially when it pertains to loan
assistance,” said Acting Deputy State Treasurer Anne Wohlfert, head of
Treasury’s State and Local Finance Group. “Scammers are taking advantage of
those who are vulnerable—and we are seeing more cases of this now than ever
before.”
The cost of college has outpaced the average income, making
it harder for students to pay their tuition bills. Scammers take advantage of this
situation and attempt to steal money out of students’ pockets when students
seek financial assistance.
In a typical student loan scam, a scammer will ask for
banking information from a student searching for loans.
The scammer typically claims they will use the
information to make a direct deposit into the student’s account in return for upfront
fees paid through gift cards. Instead, the scammer accesses the student’s
banking account and withdraws funds.
Students should also be wary when applying for
scholarships that require payment or include language that guarantees a
scholarship or their money back. These are also typically scams.
There are free services available to search for
scholarships. Students should take advantage of those services and avoid paying
for others.
“As a rule of thumb, I recommend that students never
provide personal identifiable information when applying for scholarships,”
Wohlfert said. “This includes banking, credit card and Social Security
information.”
To learn more about financial aid and other ways to
afford college, go to www.michigan.gov/mistudentaid
or contact MI Student Aid at mistudentaid@michigan.gov,
1-888-447-2687 or follow @mistudentaid on Facebook, Twitter, Instagram, or
Snapchat.
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