Help with College Costs at Sallie Mae

Sallie Mae, the largest provider of student loans in the country, announced today an offer that no family preparing for college admissions should miss.

A new website, at Sallie Mae, aims to help alleviate fears and provide answers. “We have helped more than 21 million Americans achieve the dream of a college education, and we do not intend to let this economy keep us from helping you achieve yours.” They’re not only offering detailed responses to frequently asked questions, but on Wednesday (February 25), Sallie Mae has a toll-free hotline open from 6pm – midnight EST. In addition, you can submit questions directly to the site, get email updates when new answers are posted, and download a free podcast that explains how to complete the FAFSA (the federal financial aid application).

Finally, there are two 45-minute webinars that explain how to calculate and compare college costs, create a plan to pay for college, understand loan payments, and use free scholarship Web tools. The webinars will be held on February 24 at 6 pm and February 25 at 7 pm (both EST). Register by emailing schoolresource@salliemae.com. If you miss it, the webinar will be available on their website beginning February 26.

College Scholarship Scam

With the economy getting worse, there are growing concerns among parents about funding their children’s college education.  There are some common scams used by con artists.

1. Con artists send letters to parents offering loans.  In order to process the loan, the borrower must pay an application or service fee.  Once the fee is paid in advance, they are never heard from again.  Legitimate loans usually do not require advance fees.

2. You’ve probably heard about the Nigerian scam.  They send you a letter (with a check enclosed) notifying you that you’ve won money for college. You’re asked to send a check back for fees, taxes, or overpayment (the letter said you won $1000, but the check is made out for $1500., so you immediately get a second letter asking you to refund the difference). Your check gets cashed, and the one you received is returned for insufficient funds.

3. Swindlers send offers of loans on letterhead that looks similar to the Department of Education or another government agency. The Department of Education, however, doesn’t solicit consumers to borrow money, so any mail received is illegitimate.

4. Fraudsters claim that millions of dollars in scholarships go unused each year and then, for a fee, guarantee to secure a student a piece of that money. They may even offer to fill out the applications for the student.

5. Some people will try to charge you a fee to do a scholarship search; most their searches are done using a scholarship database that is free for anyone to use.  You can do the search yourself without paying any money at such sites as Sallie Mae’s web site or FastWeb.