Jamestown Community College officials are warning area residents about a scam involving federal student loans and grants.
The federal Education Department has informed the college that someone claiming to represent the department has been calling students, offering them grants and asking them for their bank account information so that a processing fee can be charged.
The caller offers to replace the student's federal loans with an $8,000 grant and obtains the student's checking account information, according to the college.
"We are alerting students and their families that there is no Department of Education program to replace loans with grants and that there is no processing fee to obtain Title IV grants from the department," said Laurie Vorp, JCC's financial aid director.
Any victims of this or a similar scam should contact their bank and request that the bank monitor or close the compromised account.
They also should report the fraud to the department's Office of Inspector General hotline at (800) MIS-USED -- (800) 647-8733.
For more information about identity theft prevention, visit www.ed.gov/misused. For information about preventing financial aid scams, visit www.studentaid.ed.gov/lsa.