Officials are alerting Kentucky consumers about an identity theft scam involving student loan and financial aid applications.
The Kentucky Attorney General’s Office and Kentucky Higher Education Assistance Authority (KHEAA) have seen an uptick in scammers attempting to apply for student loans and financial aid using fraudulently obtained personal information, including names, addresses, and social security numbers. The scammer may attempt to obtain education loan funds and then spend the funds on other purposes.
Loan identity theft scams can damage credit history and potentially make a consumer liable for repaying the loan. Fortunately, no fraudulent student loans have been disbursed directly to scammers through KHEAA.