Scholarship Scams

One of the most discouraging aspects of starting college is figuring out how to pay for it. Hundreds of thousands of families each year struggle with the reality of college tuition and are unfamiliar with all the programs that are available for needy students. Scholarship scams are the last thing students and their parents should be faced with, but over $100 million is lost due to this kind of fraud every year.

There are a few clear signs to look out for to guard against fraudulent financial aid offers. First of all, scholarships are free, so there should be no cost to apply for or find a scholarship. Scholarship scams will almost always involve paying some kind of fee up front. Many matching services out there offer to find scholarships for a fee. The same scholarships that the service would find are available for everyone to discover if they just look in the right place. Free resources are at hand for anyone to search for scholarships. High school counselors and financial aid officers have access to numerous lists of scholarships and will share them with students at no cost. Additionally, the local library can be used to research scholarships, so never turn to a scholarship matching service to find a scholarship. Another sign to look for in scholarship scams is the assertion that there are private scholarships that are neglected to be used every year. Private scholarships are funded by organizations for specific people, qualifications, and academic fields. These kinds of scholarships are, in fact, very limited. Be suspicious of anyone who asks for money to help find unused private scholarships. If anyone asks for a fee up front, or bank account or credit card numbers, check with the Better Business Bureau and report all scholarship scams to the National Fraud Information Center.