Avoid Getting Scammed Over College Tuition: What to Know and Do

Fall is right around the corner, and with many college students preparing to start the fall semester, we wanted to take a moment this week to highlight another common scam that targets both students and their parents. 

This time of year, it’s not uncommon for scammers to target students and parents with fake calls or emails about unpaid college tuition. They often pretend to be from the school’s billing office and claim that tuition is overdue. To pressure victims into acting quickly, they may threaten course cancellations, late fees, or even student suspension unless a payment is made immediately.

How the Scam Works

A scammer, pretending to work for a college or university, contacts a student by phone, email, or text. They often claim your tuition payment is overdue and that your enrollment, class schedule, or housing is at risk if you don’t pay immediately. The message may seem real because the scammer will mention the school’s name and specific deadlines and may even spoof the caller ID or use official-looking email addresses. The goal is to pressure you into making a payment, usually by credit card, wire transfer, or a payment link, before you have time to check if the claim is valid. In reality, there may be nothing wrong with your account.

Example of the Scam

Martin, a college sophomore, received a call from someone claiming to be from his university’s finance department. The caller said his fall tuition hadn’t gone through, and his classes would be dropped within the hour if he didn’t pay immediately. They asked for a credit card number over the phone. Feeling panicked, Martin gave it to them, only to find out later that his actual tuition had already been paid and the call was a scam.

Tips to Protect Yourself from the Tuition Payment Scam

To avoid falling victim to the tuition payment scam, follow these essential tips:

• Be cautious of urgent requests. Scammers use high-pressure tactics to rush your decision.
• Verify with your school. If you get a message about unpaid tuition, contact your college or university directly using a known phone number or website.
• Avoid paying through links or unknown callers. Be cautious with payment links or unsolicited callers. Only send money or share information after confirming the request’s legitimacy.
• Watch for red flags. Poor grammar, generic greetings, and requests for unusual payment methods (like gift cards or wire transfers) are signs of a scam.

If You've Been Scammed

If you are a victim of the college tuition scam, here are some next steps you can take: 

• Contact us. If your account information has been compromised, or if you have mistakenly given money to a scam, let us know.
• Report the scam to the FTC. File a report with the Federal Trade Commission at ReportFraud.FTC.gov. Also, inform your local law enforcement.
• Report the scam to the state attorney general. You can find information at NAAG.org.
• Contact your school. Notify your school’s financial aid or student accounts office so they’re aware of the scam attempt.