Student Finance Scams: Why Students Are Being Warned to Stay Alert This January

As January student finance payments are nearing, thousands of students across the United Kingdom are being reminded to slow down, look twice and stay alert, as this would be one of the busiest payment periods of the academic year and sadly it is also when scammers arise.

For many students, January will be the second maintenance loan installment. For others starting courses in the new year, it may be their first payment. According to the Student Loans Company (SLC), these predictable payment windows give fraudsters the perfect window to strike.

Scammers often send convincing texts, emails or phone calls that appear official. Messages may claim there is a problem with a payment or that urgent action is needed to avoid delays. The goal is to trick students into handing over personal or banking details.Alan Balanowski, Risk Director at SLC, has been clear. The organisation will never ask students to confirm bank or personal details by email or text. If something feels rushed or unsettling, the advice is to pause and check details directly through a secure online student finance account.

The government has echoed this warning. Fraud Minister Lord Hanson has highlighted that students are a prime target during busy academic periods. He has urged students not to underestimate how sophisticated these scams can be, noting that a brief moment of caution can prevent serious financial loss. Official advice is available through Stop! Think Fraud, backed by the Home Office.

How student finance scams usually work

Scammers and fraudsters mainly rely on the urgency and familiarity. 

• Messages coming from ScammersContains spelling or grammatical mistakes

• Use generic terms such as “Dear Student”

• Threaten account closure or payment delaysSending suspicious links asking for verification

• Students are advised to hover over links before clicking, incase of doubt, go directly to official websites, avoid following links from messages.

• Scams do not stop at emails. Fraudsters can also contact you through phone calls, social media messages, fake posts in order to collect information. Oversharing online can make things very dangerous and vulnerable, as identity theft often starts with small details.

What protection is already in place

SLC uses several safeguards, including text alerts if bank details are changed. If a student receives such a message without making changes themselves, they should log in immediately to check their account.

It is also important to remember that neither SLC nor Student Finance England operate through WhatsApp or social media messaging. Any contact claiming or saying anything else should be treated with suspicion.

Reporting Scams

Students who have received any scam messages are encouraged to report it as soon as possible in order to faster actions. Even suspicious emails can also be forwarded to report@phishing.gov.uk and scam texts can be reported to the National Cyber Security Centre. Additional support and reporting options are available through Action Fraud.

With billions of pounds paid out each year, student finance remains a prime target for criminals. Staying cautious, checking communications carefully and relying only on official channels can make all the difference during this January payment period.