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New Guide Available to Help Consumers Recognize Deceptive Student Loan Practices |
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From Education Newsfeed: The U.S. Department of Education and Federal Trade Commission have jointly released a consumer guide to help students and their families navigate the maze of offers they may face when seeking new student loans or consolidating existing student loans to pay for higher education. Student Loans: Avoiding Deceptive Offers provides advice to help consumers detect deceptive marketing offers from private companies seeking their student loan business. "As we carry out our commitment to ensure the availability of federal student loans, we must also make sure that students and their families are armed with critical information to help them recognize and avoid deceptive lending practices," said US Secretary of Education Margaret Spellings. "This brochure will help families be wise consumers of higher education and financial aid, and I am pleased that my Department and the FTC collaborated on this timely effort." Promotions, sweepstakes, and gift offers intended to attract business and divert attention from a thoughtful assessment of the terms of the loan being offered. The new brochure includes several resources for information about student loans and filing a complaint against various types of lenders. Read the fine print on offers from lenders to lower the interest rate on your consolidated loan, as these may be tied to automated payments, a specific loan balance, or on-time payments for the life of the loan, and may change if the lender sells your consolidated loan to another company. In addition to the new brochure, the U.S. Department of Education and the Federal Trade Commission have worked together for more than 10 years to educate the public to recognize and avoid scholarship scams.
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