Needing Money For Student Loan Payments
According to The Arizona Republic, an Arizona State University graduate student was a target of a student-loan scam. She received an email from an unknown individual who claimed to have information on more than $5,000 in grant money for college. The money never had to be repaid. Scams like this can be enticing when students are needing money for student loan payments.
In fact, the email had a link to more college financial information from an individual in the United Kingdom. The graduate student realized the “individual” asked for too much personal information. He continued to send her similar emails. She assumed he obtained her email after she conducted an online search for scholarship information.
Phoenix College Students are Vulnerable for Scammers Looking for a Quick Buck
Nearly seven out of every 10 college students who graduate from nonprofit and public colleges have student loan debt. In Arizona, the average student loan is about $23,780. Many students struggle to find money for student loan payments.
College students and graduates are usually targets because they are more stressed than ever about repaying their student loans. Scammers often promise to pay their student loan debts in exchange for paying steep fees.
Common Scam Tactics Used on Phoenix College Students
There is more than one type of scam played on college students needing money for student loan payments or avoid student loans altogether. The common scams include:
- Power of attorney scam in which students are told to give over the right to make their own financial decisions to the scammers. In return, scammers will reduce their student loan debt and alter their student loans without their consent.
- Instant forgiveness scam, or Obama forgiveness scam, promises to wipe out student debt for a fee and private information. The fee seems small, but the instant forgiveness does not exist.
- Excessive fee scam involves promises to eliminate federal student loan debt in exchange for a huge fee. The fee typically ranges from $600 to $1,200. Managing student loan debt is a free option for students using the federal government’s student loan website.
- High-pressure scams involve scammers trying to pressure students with limited time only or exclusive offers to eliminate or reduce student loan debt. They do not have any special deals. They may put the student in deferment, but the college student can do that on his or her own.
Ways Phoenix Students can Reduce Student Loan Debt
There are traditional ways and creative ways to pay off student loan debt. For instance, a creative way to reduce debt is by keeping $5 bills in a jar. Every month, deposit the saved $5 bills in the bank. Depending on the amount saved, it could be enough for one or two student loan payments.
The student may want to ask his or her parents to commit to saving their $5 bills as a way of helping to make a couple extra student loan payments. The student could reduce his or her 20-year student loan payments by four years this way.
A traditional way of reducing student loan debt is by separating a full payment into two payments each month. Making a full payment each month calculates to 12 payments a year. Making two payments a month calculates to 13 full payments a year. Making separate payments reduces the interest that builds up each month.
Cash-N-Go Can Help You
It is vital to avoid student loan scammers. If you are needing money for student loan payments or any college-related expense, contact Cash-N-Go. We offer short term loan options using the collateral in your paid off or nearly paid off vehicle. Our loans come with low fees, flexible repayment options, and funding in 30 minutes. Contact us today to learn more.