​Identity theft can affect a student loan application in two ways. Identity thieves typically use stolen personal information to take out credit cards, loans, or initiate other financial transactions. Place a fraud alert on the reports so no new credit can be taken out without your knowledge.

What are predatory student loans?

Predatory lenders use this tactic, known as equity stripping, to get borrowers signed up for a loan they can’t afford with an astronomical interest rate in hopes that they will default on the loan and subsequently relinquish assets to the loan company.

Which is better fraud alert or credit freeze?

A fraud alert simply requires that creditors verify identity before opening new credit. It’s simpler to put a credit fraud alert in place — you can do it with a single phone call — but a credit freeze offers better protection. Also, fraud alerts expire automatically, while credit freezes last until you lift them.

Can you do both a credit freeze and fraud alert?

A fraud alert is free and lasts one year. A credit freeze limits access to your credit report so no one, including you, can open new accounts until the freeze is lifted. Both fraud alerts and credit freezes can make it harder for identity thieves to open new accounts in your name.

What to do if you get a fraudulent Student Loan?

If the fraudulent loan is a federal student loan, you should also report it to the Department of Education’s Office of Inspector General. This office investigates cases of waste, fraud, abuse and …

How many student loan forgiveness requests are from for-profit colleges?

Students who attended for-profit colleges filed more than 98 percent of the requests for student loan forgiveness alleging fraud, The Century Foundation said in its study, published Thursday.

How to recover from student loan identity theft?

Act quickly to recover financially from student loans borrowed without your consent through identity theft. Education Home Colleges Rankings & Tools National Universities National Liberal Arts Colleges Regional Universities Regional Colleges HBCUs Community Colleges Compare Colleges College Search College Majors Scholarship Search

How many complaints are filed against for-profit schools?

Of the more than 98,800 complaints received by the department as of mid-August, 98.6 percent came from students at for-profit schools, while only 1.4 percent of them were filed by those who attended non-profit institutions.