Scholarship Scams

 

Searching for a Scholarship? Buyer Beware!

Published by: Guidance and Admissions Committee
The College Board Western Region

This brochure was created to alert families to a concern that is increasingly widespread: fraudulent scholarship search services or in other words:

SCHOLARSHIP SCAMS.

Warning Signs

How Else Can You Be Aware of Scams?

What To Do If You Suspect An Offer Is a Scam

Where Can You Get Free Help?

Sources On The World Wide Web

Recommended Books

Hundreds of scholarship services are on the market, but many are scams. The Federal Trade Commission (FTC) recently launched Project Scholar$cam to alert consumers about fraudulent search services.

 The FTC warns students to beware if the scholarship service:

  • Guarantees that a student has won a scholarship
  • Pledges that this scholarship information is not available anywhere else
  • Requests a credit card or bank account number so that they can hold the scholarship for the student
  • Promises that the service will do all the application work
  • Requests payment before they give the scholarship
  • Claims “a national foundation has selected you to receive a scholarship” or “you are a finalist” in a contest the student never entered.

 How Else Can You Be Aware of Scams?

 We found the following information from the Financial Aid Information Page on the World Wide Web (http://www.finaid.org).

 Scholarship scams usually have a particular set of characteristics. Watch out for these warning signs:

  • Application fees
  • Other fees
  • Guaranteed winnings
  • Everybody is eligible
  • Unsolicited opportunities
  • Typing and spelling errors
  • No telephone number
  • Mail drop for a return address
  • Operating out of a residence
  • Masquerading as a federal agency
  • Time Pressure
  • Unusual requests for personal information
  • Notification by phone
  • Excessive hype
  • Disguised advertising
  • A newly-formed company

 For specific details, please visit the Financial Aid Information Page noted above.

 “If you must pay money to get information about a scholarship, it might be a scam.”
--Mark Kantrowitz
   Financial Aid Information Page

What To Do If You Suspect An Offer Is a Scam

 Start with your school counselor.  Also, the following organizations can help you decide if an offer is legitimate. They will tell you whether they have received any complaints about the company, or whether the company is currently under investigation.

 Better Business Bureau (BBB). Call the BBVB in the city where the scholarship is located. They can report on the company and inform you if anyone has filed a complaint.

 National Fraud Information Center (NFIC) (800) 876-7060. The National Consumers League operates this hotline. The NFIC passes information along to the Federal Trade commission (FTC) and other law enforcement agencies.

 Mark Kantrowitz, editor of the Financial Aid Information Page. Fax him, toll-free, a copy of the suspect materials you receive at (888) 411-6565. As a volunteer, Mark maintains a list of agencies currently under investigation which may be found on the Financial Aid Information Page noted above.

Where Can You Get Free Help?

 We do not intend this brochure to answer all of your questions.  Instead, it is a resource to get you started. Many valuable FREE resources of information are available to students seeking information on how to pay for their college education.  Some of those sources are:

            High school counselors

            High school college and career centers

            College and university admissions offices

College and university financial aid offices

The Internet

Local public libraries

 

Sources on the World Wide Web

Many high schools, public libraries and families have access to the World Wide Web on the Internet. Listed below are some Web sites to get you started. We encourage you to visit these Web sites to attain information to help you begin your college plans.

 

The College Board  http://www.collegeboard.org

College Board Online gives students and parents “information to aid in the transition from school to college.” This site also has the “ExPAN Scholarship Search,” which provides free information about private scholarships. ExPAN software is also available in over 1,650 high schools. You can get information about familiar College Board tests, programs, and services .. and try out the SAT “Test Question of the Day!”

 

Financial Aid Information Page http://www.finaid.org

Provides links to sources about financial aid. Explains financial aid available to students and gives information about scholarships and scholarship scams. Check out Mark’s Pick.  It gives a quick overview of high quality sites that serve as a good starting point.  You can also connect to many college financial aid offices and find links to financial aid planning and qualification estimators.

 

FastWEB Scholarship Search http://www.fastweb.com

A free scholarship search of more than 180,000 private scholarships and loans from more than 3,000 sources.

 

U.S. Department of Education  http://www.ed.gov.offices/OPE/express.html

To apply for federal financial aid, complete the Free Application for Federal Student Aid(FAFSA). You can submit the paper form which is available at your high school or college financial aid office. Another option is to download the FAFSA Express software from this Web site. This software allows you to apply for federal student aid via your home computer. (NOTE: If you have already submitted a paper copy, do not submit another one via your computer.) If you have any questions about Federal Student Aid or the status of your FAFSA, call 1(800) 4-FED AID.

In addition to the FAFSA, several colleges require the College Board Profile form. It is used as a part of the application process.

 

Recommended Books

There are over 422 books printed about scholarships. Listed below are some guide books to get you started.

College Costs & Financial Aid Handbook, 1997 The College Board, New York, NY, 1996.

Peterson’s Scholarships, Grant, and Prizes, 1997 Peterson’s Guides, Princeton, New Jersey, 1997

Prentice Hall Guide to Scholarships and Fellowships for Math and Science Students, Prentice Hall, Englewood Cliffs, NJ, 1993

The Ambitious Student’s Guide to Financial Aid, Octameron Press, Alexandria, VA

The A’s and B’s of Academic Scholarships, Octameron Press, Alexandria, VA

Copyright © 1999 Healdsburg High School