Signs of a Scholarship Scam
The whole point of scholarships, grants, and financial aid is to get help paying for college tuition. Despite this fundamental concept, some people are pressured into paying large fees to private “aid consultants” in the hope that they’ll get their investment back and more. Chances are, these consultants will just take your money and give you information that could have been obtained directly from a free source.
Recognize the Signs of a Scholarship Scam: The Federal Trade Commission lists these signs and suggests that students beware when they hear the following claims:
- “The scholarship is guaranteed or your money back.” Some scholarships like the Bright Futures Scholarship are guaranteed for students who meet all of the required eligibility criteria, but there isn’t a fee. Real financial aid programs simply don’t cost money!
- “You can’t get this information anywhere else.” This just isn’t true. Trust me, it is almost definitely on Google, a scholarship search site, maybe even in your high school or college financial aid office.
- “I just need your credit card or bank account number to hold this scholarship.” Don’t give away personally identifiable information. Any reputable award would be willing to write a check to the college or university; some might even send a check directly to the student. If they refuse to pay you without your banking info, forget it! This is a sure sign of a scammer who wants your money.
- “We’ll do all the work.” Even if its true its a dishonest way to chase tuition. You might be able to find someone willing to write your essays and applications, but how will they capture your unique voice? How will you handle the interview when you don’t know how you got there?
- “The scholarship will cost some money.” Scholarships cost time and work, but application fees should be a big warning flag. There are some cases where a small application fee is appropriate, but usually it is only standard for lengthier writing contests. For example, if you’re submitting a 20-page fiction sample or an act out of a screenplay, a $5-$10 fee is quite fair if they are returning a critique of the work even if you don’t win.
- “You’ve been selected by a ‘national foundation’ to receive a scholarship” or “You’re a finalist” in a contest you never entered. - This is usually the sales pitch that comes before an attempt to get your personal or financial data.
Search for Scholarships, free: Fastweb.com, ScholarshipExperts.com, and Scholarships.com all provide excellent information at not cost, and we’re working on our own free scholarship search as well. The key to success here is actually investing the time to use these tools, find the awards that most closely match the student’s personal characteristics, and writing out the applications with care and attention to detail. Its better to apply for a few awards specific to the student’s special skill or interest than it is to apply for every single sweepstakes and content you can find.
May 17th, 2008 at 5:11 am
I am an international student from chad in africa.I am willingly and greatly interested to studying .studying is one of the important and relevant things in my studying life. I would like you to know the situation in africa. I was grown in a large family, and you know the situation like ours.it doesn’t allow me to study in a good institution like yours.to study at good univerty is not easy for the poor man like me.but I count on your undergraduate scholarship that which would be very helpful and even more necessary for me. .please give me one chance to study in your institution. I hope on your good will and cound on on your repectful responsability.I waiting your reply.
May 21st, 2008 at 3:38 pm
Thanks for the information. It’s scary that the scam artists are going every channels to try to steal people’s private information.
July 23rd, 2008 at 6:06 am
I have a friend that was scammed and had his identity stolen. Most scam artists steal the identities of students submitting resumes.
July 25th, 2008 at 12:54 pm
In your article, you specified only private student loans/scholarships only, so I will delve into this after mentioning this: the U.S. government has a direct loans programs (FFDSLP), which through lenders, gives students loans in the form of a check. This money can then be used for whatever is necessary to fund your education. The rates on these loans are extrememly attractive to students. A comparison of all these types of loans can be found at http://www.schoolloans.com/. At the same website, a comparison and contact for all lenders of private student loans is also available. I used the site and had a ton of lenders contact me in a few days, with so many offers, I virtually had banks negotiating through me with other banks on who could offer better terms. My guidance counselor told me to do this, so today I can’t thank him enough.
Private student loans can carry higher interest rates than federal loans, but with your great standing before applying for the loan, you will easily be able to find loan terms similar, if not, better than the federal government offerings. Choosing a company that would “be best” really comes down to dollars and cents…compare the loan rates, repayment terms, and the amount of money necessary to repay in the future on a monthly basis and an overall basis. Basically, any bank will offer a hassle-free process if this what you are looking for as well. Hope this is helpful, but I know for me personally, it worked like a charm and still does every semester I need a new loan.
August 6th, 2008 at 8:21 pm
Thanx to you, this information will help students like me when we applying to scholarshps. thanx
August 6th, 2008 at 8:22 pm
Also when will you start your scholarship search service?