"Financial aid scams come in two forms," Smart Money reports. "First, you've got federal and private loans scams. Other rip-offs relate to scholarships. So how do you recognize a scam? Certainly, the old adage that any offer that sounds too good to be true probably is applies here. Also, watch out for letters with typos or companies that don't provide a phone number or other contact information, says Justin Draeger, a spokesman for the National Association of Student Financial Aid Administrators (NASFAA). If parents do receive a loan solicitation that sounds too good to pass up, call the university's financial aid office to make sure it's legitimate says, NASFAA's Draeger."