LANSING, Mich. --The Michigan Department of Treasury’s MI Student Aid Team is issuing a new warning as student head back to college.
They say that students need to be on the lookout when being offered financial assistance in the form of loans and scholarships.
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.