Current OVU Students and Prospective Students:
From time to time individuals claiming to be representatives of the U.S. Department of Education (ED) have called students offering grants and have requested bank account numbers in order to charge a processing fee. Specifically, the callers tell students that they know the student has applied for a federal student loan. The caller will then offer to replace the loan with a sizeable grant. The callers claim that the processing fee is required in order to complete the transaction.
Please be advised that there is no ED program to replace loans with grants and there is no processing fee to obtain Title IV grants from ED. Furthermore, students should never provide their bank account or credit card information over the phone unless they initiated the call and trust the company they are calling.
A student who is a victim of this or a similar scam should take the following steps:
- Immediately contact his or her bank, explain the situation, and request that the bank monitor or close the compromised account.
- Report the fraud to ED's Office of Inspector General hotline at 1-800-MIS-USED (1-800-647-8733) or email@example.com. Special agents in the Office of Inspector General investigate fraud involving federal education dollars.
- Report the fraud to the Federal Trade Commission (FTC). The FTC has an online complaint form at www.ftc.gov/scholarshipscams and a hotline at 1-877-FTC-HELP (1-877-382-4357; teletype for the hearing impaired: 1-866-653-4261). The FTC will investigate if the fraud is deemed widespread; therefore, it is important that every student contacted by the person or people in question lodge a complaint so the FTC has an accurate idea of how many incidents have occurred.
- Notify the police about the incident. Impersonating a federal officer is a crime, as is identity theft. When filing complaints, the student should provide detailed information about the incident, including what was said, the name of the person who called, and from what number the call originated (if the student was able to obtain it via Caller ID). Additionally, if unauthorized debits have already appeared against the student's bank account, the student should mention this fact in his or her complaint. Records of such debits could be useful in locating the wrongdoer.
For information about identity theft prevention, parents and students may visit www.ed.gov/misused. For information about preventing financial aid scams, visit www.studentaid.ed.gov/lsa.