Student Loan Fraud

FTC releases a new guide on avoiding misleading ads.

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My colleague Kim Clark reported in our On Education blog that the Federal Trade Commission has some new tips on avoiding loan fraud:

Just in time for the college loan shopping season, which starts July 1, the Federal Trade Commission has posted a guide to avoid rip-offs.

One of the most important tips is to be very skeptical of any solicitation that looks like it is coming from the federal government. The U.S. Department of Education "does not send advertisements or mailers, or otherwise solicit consumers to borrow money. If you receive a student loan solicitation, it is not from ED," the FTC warns. U.S. News documented some misleading loan ads here and, in partnership with Simple Tuition, offers a tool to help you compare student loan prices.