µţ˛âĚýDawn Handschuh
Figuring out how to pay for college can be daunting. The limited time you have to secure sufficient funding for tuition may make developing a financial plan not only challenging but also stressful enough to potentially let down your guard when it comes toĚýscams disguised as opportunities.
Fraudulent businesses such as self-proclaimedĚýscholarship search servicesĚý´Ç°ůĚýscholarship clearinghousesĚýmay advertise in reputable publications or mail you letters containing toll-free phone numbers and websites, but that doesn’t mean they’re necessarily trustworthy.
Here, we explore when to believe a legitimate scholarship opportunity and when to beware of scholarship scams.
Explore scholarships for new, current, alumni and returning students in bachelor’s, master’s and doctoral degree programs.Ěý
According to the Federal Trade Commission (FTC), students should beĚýwary of certain languageĚýthat’s frequently used in scholarship scams to separate you from your money. Such wording may include:
It’s not unusual to seeĚýadvertisementsĚýfor a financial aid or scholarship seminar. While some are legitimate, such as those offered by reputable institutions or schools, others are cleverly framed sales pitches for overpriced loans or scholarship consulting services.
Before attending aĚýworkshop or seminar, do an online search using the organization’s name followed by “scam” or “complaints,” and see if this turns up anything concerning. Don’t pay any fees at the seminar regardless of what company representatives may tell you about missing a limited-time opportunity.
Scammers may use words like “national,” “federal,” “administration” or “foundation” as part of their company name to sound as if they represent a branch of the government or a nonprofit group.Ěý(Many of these words are actually part of legitimate organizations, making their adoption by fraudulent endeavors that much more confusing.) Often, these names are just aĚýslight variationĚýof the name of a real government agency.ĚýFraudulent entities may even appropriate certain seals used by federal agencies in their literature to imply an endorsement or authorization.
OtherĚýscholarshipĚýscams can happen over the phone. Your caller ID, for example, may indicate that the phone call about the federal grant you just won is coming from Washington, D.C., but scammers located elsewhere can use technology toĚý“spoof” the callĚýto make it appear it’s coming from an expected location when really it’s being placed from someplace else.
According to the Better Business Bureau (BBB), one scam involves sending a scholarship check along with aĚýrequest that you remit paymentĚýfor taxes or other charges. The check turns out to be bogus and whatever money you sent is lost. Remember, it’s illegal for anyone to charge you to better your chances of receiving a federal grant.
Here’s what you can do if you experience any of these red flags when seeking scholarship assistance or funding:
While there are legitimate firms that offer scholarship assistance, the BBB reminds students they can oftenĚýfind the same awards by searching onlineĚýthemselves or turning to the financial aid office at the college they plan to attend.
Additionally, you don’t have to pay for help with federal student loans or with completing the FAFSA form. Free help is available at your school’s financial aid office, at theĚýĚýor theĚý via phone call, email or online chat. Additionally, the website provides resources for legitimate scholarships and how to avoid scams.
Before handing over payment for a commercial scholarship service, stop and consider what you’re paying for. Is it worth it?ĚýDoes it seem too good to be true?
ABOUT THE AUTHOR
Dawn Handschuh has been putting pen to paper for more than 30 years, writing widely on topics related to student lending, personal finances, everyday money management and retirement planning. She makes her home in Connecticut with her husband and two energetic German shepherds.
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