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Three Common Financial Traps to avoid when you go to College

College goers are often susceptible to scammers. They have to balance out entering a new college, learning new subjects while making new friends in a foreign atmosphere known to them. Majority of the students avail loans to cover their tuition costs.

Without proper coaching and tips, these freshmen are now liable for thousands of dollars in their bank accounts. Students are recommended to keep the following tips in mind.

Look out for fake scholarships

Students should be on the look for counterfeit awards that may come across their paths. Scammers often use this technique to reach out to the desperate students who badly want a scholarship. Use your diligence when any said scholarship from an unheard institution reaches out to you considering the fact you haven’t even applied for any such scholarship in any fishy institution.

Do not fall for such traps like these and end up submitting your personal contact information and social security number. Use your research skills and ask people whether they had heard about such institutions and make sure if it’s legitimate or not.

Credit cards traps

Students should be particularly aware of those cards that are aggressively marketed by the banks. In 2009, the CARD (Credit Card Accountability, Responsibility, and Disclosure) Act prohibited banks from using college venues to publicise their credit card programmes. Students should be careful as not to fall for amassing credit card debt.

It is recommended that first-year students who have availed loans maintain a maximum of one credit card in hand with a systematic and coordinated plan settling each monthly payment.

Private loan scams

Students who have availed of private loans should be wary about two main frauds. The first would be scammers who contact students availed of loans by contacting them stating they are from the university or bank and attempt to lure your personal information leading to identity theft. Be careful of such frauds and always be careful who you speak to in sensitive topics and do no unleash too much information online without proper evidence.

Second, do not fall for fraudulent guarantee loans. Loans depend on plenty of other vital factors rather than publicised guarantees. Before taking up private loans, students should be aware of the legitimate subsidized federal student loans that are reliable and offer a safe and flexible means of repayment for students.

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