Scam targets college students

Scam targets college students

Millions of dollars in student loans are due each year, but now some scammers are taking advantage of students who are working hard to pay them off.

In many cases, the student loan scammer claims to get rid of your debt, but asks for a fee up front.

'When you are asked to pay a fee before you get the loan, that's actually illegal in this country. It's called an advanced fee loan scam," said Janna Kiehl with the Amarillo Better Business Bureau.

But, student loan debt can quickly become overwhelming, leaving many wondering what they can do to get rid of it.

"People who have a lot of debt or want to pay off a lot of debt are looking for this type of a loan to consolidate or help them out to pay something after they get out of school," Kiehl said, which is also why she thinks so many students are falling for this scam.

However, doing research before agreeing to a loan may help keep you from becoming a victim.

"Read the small print, and if an offer sounds to good be true, you need to do a lot of research before you agree to anything at all," she said.

The BBB suggests that if you decide to take out a loan to help consolidate your debt, make sure you are doing business with a credible company.