Scholarship Scams
Beware scholarship scammers. Here are some of their favorite tricks:
- "Free seminar." It may be legitimate or it may be a hidden sales pitch.
- "You can't find this information anywhere else." Yes, you can. They do not know about anything that you cannot learn on your own.
- "You're a finalist!" or "You've won!" a contest you never entered. The caller offers to hold your award funds in return for your credit card or bank account number. Hang up!
- "First come, first served." This may apply to some legitimate forms of financial aid, but not to scholarships. However, legitimate scholarship sponsors do impose deadlines.
- "Millions of dollars go unclaimed." False! Every legitimate scholarship sponsor predetermines award amounts and works very hard to select the most qualified recipients.
- "It's guaranteed!" What is usually guaranteed is search "results" - not scholarship money. We can show you how to conduct your own first-rate search."
- "We'll do the work for you, for a fee." The fee may be nominal and the offer may come from someone sounding official, but your money is best spent elsewhere.
- Others
Warning Signs
Check out these warning signs from the Federal Trade Commission:
- The company guarantees a scholarship or your money back.
- The scholarship service promises to do all the work.
- There is a fee required for the listings the service provides.
- The scholarship company claims to have exclusive information.
- You become a finalist in a contest you cannot even remember entering.
- There is a request for your credit card or checking account number.
Ten Tips to Protect Yourself
- A lower fee is no guarantee a program is legitimate.
- Do not believe a promise of guaranteed funds you will never have to repay. Remember: if it sounds too good to be true, it probably is.
- Beware scholarship services that charge fees.
- Ignore the myth of unclaimed funds and the companies that advertise huge amounts of unclaimed money.
- Do not pay an advance fee.
- Check the terms closely if there is a guaranteed refund or a money back guarantee.
- Do not be fooled by official sounding names and logos.
- Disregard the news that you are a finalist in any contest that requires you to pay a fee for further consideration.
- Do not give out your credit card, bank or checking account numbers to any solicitors who claim they need it for you to be eligible for either a contest or access to "exclusive" scholarship information.
- Resist high pressure tactics.