Spotting a student-benefit scam

Fees for forms that cost nothing

Filing the FAFSA at studentaid.gov costs nothing, and so does creating your StudentAid.gov account. Applying for SNAP, Medicaid or Lifeline through the official office carries no fee either. A site or caller that charges to file one of these is selling a service you can skip, and you have no way to check what they send in your name.

Be careful with sites that look official but end in .com or .org instead of .gov, and with search ads placed above the real result. Type the agency's address yourself, or start from your school's financial aid pages.

Grants and scholarships that come looking for you

A message saying you have won a grant or scholarship you never applied for is a warning sign. Federal grants for students come through the FAFSA and your school, and federal agencies do not call people to offer them. A request for a processing fee, a tax payment or your bank login before you can collect is a signal to stop.

Legitimate scholarships rarely charge to apply, and a sponsor cannot know you will win before it reads your application. Check an unfamiliar scholarship with your financial aid office before you send anything.

Loan relief pitches

Companies that offer to lower or cancel student loans often charge up-front or monthly fees for paperwork you can do yourself. Changing a repayment plan, consolidating federal loans or applying for forgiveness costs nothing through your loan servicer and studentaid.gov. Federal rules bar many debt-relief companies from charging before they deliver results, so an up-front fee is a strong warning sign.

Some of these companies ask for your StudentAid.gov login so they can act for you. Keep it to yourself, because with it someone can change your contact details, your repayment plan and where notices go.

Account takeovers

Scammers also go after the accounts that hold your aid. A text or email that says your aid is on hold and asks you to sign in through a link may lead to a copy of your school portal or StudentAid.gov. Once inside, someone can change the bank account where your refund is deposited.

Your school, Federal Student Aid and your bank do not ask for your password or a sign-in code by phone, text or email. Turn on two-step verification wherever it is offered, and check your refund and direct deposit details each term.

Pressure and payment methods

Scammers often try to rush you so that you act before you check. Watch for a deadline of today, a threat of arrest or of losing your aid, or a request to keep the call secret from family or the school. A real office gives you time and lets you call back through its published number.

The way someone asks to be paid can also give a scam away. Gift cards, wire transfers, cryptocurrency and payment apps are hard to reverse, which is why scammers prefer them. Job offers that send you a check and ask you to return part of it follow the same pattern, since the check bounces after you have paid.

Signs to stop and check

• A fee to file a free form
• An award you never applied for
• A request for your login or sign-in code
• A deadline of today or a threat
• Payment by gift card, wire or crypto