Investing in education beyond high school is an investment in future life and career endeavors. However, in order to afford a higher education, some students and families may have to take out loans. Whether you are dealing with new student loans or existing education loans, the Federal Trade Commission (FTC) is warning consumers to be aware of potentially deceptive claims or business practices.
The FTC and the U.S. Department of Education have comprised tips to help you identify deceptive private student loan practices.
- Some private lenders, along with their marketers, will use names, seals, logos, etc. that are similar to those of government agencies in order to mislead consumers and give themselves credibility.
- Promotions or incentives such as gift cards, credit cards, and other prizes should not divert you from assessing whether or not the terms of the loan are legitimate and/or reasonable.
- Never give out personal information on the phone, through the mail, or on the Internet unless you know with whom you are speaking.
- Do research on the particular lender you are dealing with through you state Attorney General (www.naag.org), a local consumer protection agency (www.consumeraction.gov), and the Better Business Bureau (www.bbb.org).