Student loan scams: Tyler Perry doesn't have a college scholarship waiting for you

Entertainment mogul Tyler Perry does not have a scholarship sitting on the sidelines just waiting to help you go to college. No matter what you might spot on Facebook.

No one who just calls you out of the blue needs your credit card number to hold onto a scholarship in your name, either.

And really, someone you meet at a party does not have a great way to make money fast. Never, ever hand over the login information for your bank account to a stranger who somehow convinces you of a "sure deal."

As the deadline for college tuition payment approaches, students might be tempted to fall for some fishy quick fixes to raise cash. And many others might be tricked into thinking they've just run into a solution to pay off college debt.

While college students and their parents are hunting for ways to pay for school, scammers are crafting even more ways to rip them off.

Here are warning signs for scams relating to college scholarships and student loans.

The student loan rip-off 

College students may hear about an easy way to make money for college via email or social media. 

And many times, fraudsters reach out to students directly through an acquaintance or at a party offering a quick way to make some cash.

The scammers, though, ask the student to provide their online banking login, according to Deidre Davis, chief marketing officer for the Michigan State University Federal Credit Union. 

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The idea is that the money would be put directly into the credit union or bank account. The student sees some more money online and then is asked to pay fees upfront via a Google Play gift card, iTunes gift card or other gift cards. 

The student figures he or she is not out any money since they did see that money was deposited into the account. So they go out and buy the gift cards. Often, they're asked to read the numbers on the gift cards over the phone so the con artists have quick access to the money.

But the check the fraudster deposited is likely bad. And the money that appeared to be in the account is soon gone. And you're out whatever you put on the gift cards, too. 

Once fraudsters have access to the student’s account, it is possible that they could get access to their savings, too.

"In the cases we’ve seen, however, the students don’t have much money in the account, so the fraudsters only get the funds they’re able to deposit with bad checks," Davis said. 

Davis said the credit union is seeing increasing numbers of student members getting taken by this new scam — called account takeovers. 

It's a terrible move. Giving your online banking login to a stranger is sort of like handing someone who seems friendly your car keys and being surprised that they stole your car.

I've written earlier this year about a similar scam involving debt consolidation loans, an ongoing scam that's led to losses of $500 to $1,500 for some consumers who agree to put money on gift cards as the final step in completing a debt consolidation plan. 

The U.S. Department of Education notes that you do not want to give banking information to just anyone with a pitch promising financial aid.

The debt-relief student loan scam

One Michigan consumer complained in April that he received a call from someone who told him he qualified for the "Obama Forgiveness" plan relating to student loans, according to a complaint made to the Better Business Bureau serving Eastern Michigan.

The consumer gave his Social Security information and debit card information to the caller to participate in a plan to reduce his college debt. But later his sister told him that he might have fallen for a scam. He called the U.S. Department of Education and was told they had never heard of the outfit. 

The consumer had to call his bank to cancel his debit card. He did not report losing any money, likely because he acted very quickly and never bought gift cards. 

Aggressive scammers will use robocalls to harass you into thinking they can eliminate your debt for a fee, as well. 

Borrowers need to be especially aware of bogus claims that can lead to scams, said Mark Munzenberger, financial education specialist for the University of Michigan Credit Union. 

Beware of claims such as: “Act immediately to qualify for student loan forgiveness before the program is discontinued.”

Or:  “Your student loans may qualify for complete discharge. Enrollments are first come, first served.”

The Federal Trade Commission initiated a sweep in late 2017 to go after student debt relief companies that made false promises and collected $95 million in illegal upfront fees. Often, scammers will pretend to be affiliated with the government. 

"Only scammers promise fast loan forgiveness," the FTC said.

For legitimate federal student loan repayment options, see StudentAid.gov/repay

The FAFSA fee scam

The place to submit a Free Application for Federal Student Aid is www.fafsa.ed.gov — not anything with a dot-com ending.

The U.S. Department of Education notes that several websites offer help filing the Free Application for Federal Student Aid form for a fee.

But those sites are not affiliated with or endorsed by the U.S. Department of Education. And you can get free help filling out the forms, too, including at a college's financial aid office. 

You do not want to pay any money to submit a free application. It's a "Free Application." 

The hacker attack on 529 plans

The Connecticut state treasurer announced in June that 21 Connecticut Higher Education Trust college savings accounts had been breached, resulting in 44 unauthorized withdrawals totaling more than $1.4 million. Of that amount, about $440,000 was recovered or stopped. The incident involved ID theft using personal identifiable information gleaned elsewhere.

TIAA-CREF Tuition Financing Inc. fully restored the accounts. While families will not be out any money in this case, it's important to keep an eye on money in 529 plans just in case hackers attempt to gain access in other state plans. Also make sure to use different user names and passwords for each online account and change them periodically

The Michigan Education Savings Program, offered by the state of Michigan, has TIAA-CREF Tuition Financing as its program manager. No such problem has been reported in Michigan. 

As a precaution, though, TIAA-CREF Tuition Financing is implementing stricter security guidelines for the Michigan savings plan web portal, said Robin R. Lott, executive director for the Michigan Education Trust, the Michigan Education Savings Program and the MI 529 Advisor Plan. 

The scholarship scam

Atlanta-based filmmaker Perry took to Facebook in July to warn that he does not have a scholarship program, even though impostors on the Internet are claiming otherwise.  

"Do not let anyone tell you that I have a scholarship program that you have to pay to be a part of, OK?"

The actor and director went on to say that he personally has put a lot of kids through college. But that's not an official program where people can request college hlep. 

"They have been gifts, so don't let these folks trick you," Perry wrote. "Do not give anyone any money in my name. This is all a scam. I hope these people get caught."

The Perry scam is one of many that try to get cash-strapped consumers to pay money upfront in one way or another to get a scholarship.

The Better Business Bureau warns that some scams include "money-back guarantees." 

The only guarantee there, though, is you're looking at a scam, according to the Better Business Bureau. Don't fall for phrases like "the scholarship is guaranteed or your money back."

Beware of any requests for your Social Security number, your credit card number or your bank account number in connection with any scholarship, said Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com. 

ID thieves can use your Social Security number to open up credit cards using your name. A crook can use your credit card to charge items to be sent elsewhere. Con artists can use your checking account number and information to empty your bank account using a demand draft — and they don't need a signature on a check, Kantrowitz noted.

Some scholarship scams will just send you a check but then claim the amount was for more than you won. And you need to send back some extra cash — or put that extra money on a prepaid card. Don't do it. The check is a phony.

The scammers — who might even claim to be from a financial aid office — might say you won a scholarship but you need it hand over money for processing fees or taxes.

"Scholarships for tuition and textbooks are tax-free," Kantrowitz said. 

Another potential scam: The so-called millions of dollars in unclaimed scholarships.

"While there are a few unclaimed scholarships, they go unclaimed because they can't be claimed," Kantrowitz said.

For example, there's a William Zolp Scholarship at Loyola University of Chicago for any Catholic student who was born with the last name Zolp. A copy of a birth certificate and a baptismal or confirmation certificate confirming the last name of Zolp and that the applicant is Catholic must be filed with the Financial Aid Office. Scholarship amounts vary.

"Most years they have eligible students, but some years they have none," Kantrowitz said.

You can look for scholarship information for free at StudentAid.gov/scholarships. 

Contact Susan Tompor: stompor@freepress.com or 313-222-8876. Follow Susan on Twitter @Tompor.