Better Business Bureau alerts college grads to popular scams

Congratulations to this year's college graduates. We know they are getting ready to start their new lives and it can be a big transition that includes several significant changes. Grads may be moving to a new city, finding a new place to live, or searching for a new job. Graduation also often means new financial responsibilities, such as starting payments on student loans.

As college graduates navigate these many life changes, BBB has found that scammers are eager to exploit their inexperience. Here are some tips to help new grads stay aware of the common scams to avoid:

Know the terms of your student loans: One of the most common ways scammers target college graduates is with fake loan forgiveness opportunities. These can come in the form of unsolicited emails, phone calls, or text messages offering to qualify the graduate for lowered payments through a debt forgiveness program. They'll ask for a form to be completed and collect a fee for the company's services.

Some of these companies may exist, but too often BBB finds that advertised services can come with false claims and incomplete information. Other companies are fakes that are looking for ways to collect personal information and money. Your BBB encourages you to visit StudentAid.gov to learn more about student loan forgiveness, as well as federal student loan repayment options. Student loans can be forgiven only under specific circumstances, so you'll want to contact your loan servicer to determine options that are available to you. They'll assist you at no charge.

Scammers may also contact college grads regarding the student loan repayment hiatus in response to COVID-19. They may claim that to take advantage of the program, you must complete a form or pay a fee. However, according to the US Department of Education's Federal Student Aid division, the student loan payment pause has been extended until the division is permitted to implement the debt relief program or litigation is resolved. The Federal Student Aid division states that they will notify borrowers before any payments would restart. You can learn more at https://studentaid.gov/announcements-events/covid-19.

Understanding the ins and outs of your student loan — what kind of interest you owe, when you need to start paying, and for how long you'll be expected to make payments — will protect you from these scams.

Be wary of unsolicited messages about unpaid tuition: Some con artists contact graduates or their parents, claiming some of their tuition was left unpaid. They'll typically threaten that the graduate's degree will be revoked if it isn't paid immediately. They may also ask that payment be sent via wire transfer or prepaid debit cards, as these options get your money in their hands quickly and leave no paper trail.

Whether contact is by phone, email, or text message, be wary of anyone who makes contact out of the blue. Government agencies, as well as most higher education facilities, will make contact by mail initially. When you're unsure if a message is legitimate, be sure to do research to verify the person's claims before agreeing to anything. Check with your school's bursar's office or check on the school's official website if the information is accessible online. You should always be able to verify the legitimacy of an outstanding bill without being pressured to act quickly.

Do research before accepting jobs or job interviews: Scammers may try to lure recent graduates into an employment scam through false offers for high-paying, easy, entry-level jobs. Con artists are skilled at drawing new grads in by promoting unrealistic wages for generally labeled job positions, such as "virtual assistant" or "customer service rep." They may ask for your personal information, including your bank account and Social Security number, claiming they need it to set up direct deposit or file taxes. In other cases, scammers require you to pay for training. In yet another version, you may be "accidentally" overpaid with a fake check and asked to send back the extra funds. These approaches are designed to take your money rather than paying you for a legitimate job.

If you are considering a job with a company you aren't familiar with, do some research before you complete an application or agree to an interview. Ensure the company has legitimate contact information and the position is posted on their corporate website. Scammers often steal the names of real companies for their phony job postings, so it's best to call the legitimate business at a number that has been confirmed to be theirs and verify they have you scheduled for an interview.

For additional tips for avoiding scams while job hunting, you can check out BBB's report on employment scams.

Watch out for rental scams: If you find an upscale apartment in a trendy neighborhood at a very affordable price, there's a good chance that it's a scam. According to a survey by Apartment List, 43% of people looking for a rental online have encountered a bogus listing.

Scammers often try to attract victims by promising low rents, extra amenities, and an excellent location. If you are looking to rent a home or apartment, it's best to do a comparison with other nearby rental properties to be sure the cost sounds appropriate. An exceptionally low price compared to properties in close proximity could serve as a red flag.

Scammers regularly copy the photos and descriptions of real properties and post them online with their contact information in hopes of tricking victims into paying deposits and first month's rent. Don't send money to someone you've never met for an apartment or rental home you haven't seen. If you can't visit an apartment or house yourself, ask someone you trust to go and confirm that it is what was advertised. Then, take all steps necessary to confirm that the person claiming to be the listing agent has the authority to manage deposits and rental agreements for the property.

Finally, read the lease agreement documents and be sure that all key details have been included before you sign. Don't be embarrassed to ask questions or to request clarification on anything that is missing or is stated differently in the agreement than what was presented verbally. If you have any doubts or questions, consider consulting with friends or family members who may be more knowledgeable on the subject before signing an agreement.

BBB's also offers a study and additional tips on rental scams and tips on the top six scams that target current college students. You can reach your BBB at 423-266-6144 or tngabbb@chattanooga.bbb.org.

Michele Mason is president of the Better Business Bureau in Chattanooga.

  photo  Staff file photo / Chattanooga Better Business Bureau President Michele Mason
 
 


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