The American Bankers Association Foundation released a new infographic today providing consumers with information on common scholarship and student loan scams and tips on how to avoid falling for them. The infographic is the first of four to be released in the coming weeks highlighting scams targeting college-aged students as part of the foundation’s Get Smart About Credit campaign.
More than $100 million is lost in scholarship scams every year and more than half of students who applied for a private loan reported receiving a fraudulent loan, according to the Federal Trade Commission. The ABA Foundation is encouraging banks of all sizes participating in the campaign to share the infographics with their customers and distribute the information in the communities they serve.
“We think it’s critically important to help spread the word on the prevalence of these scams and what students and parents can do to protect themselves during the application process,” said Lindsay Torrico, executive director of the foundation. In the wake of the Biden administration’s plan to cancel some student loan debt, “we want consumers to be particularly vigilant and informed as they navigate the new forgiveness program.”