Scholarship Scams
If it seems too good to be true…
Unfortunately, there are many offers made to graduating high school seniors and enrolled college students from scholarship search companies that may sometimes resort to fraudulent and deceptive marketing practices.
Use Caution
Use caution when you see suggestive techniques such as:
- The scholarship is guaranteed or your money back.
- You can't get this information anywhere else.
- I just need your credit card or bank account to hold the scholarship for you.
- We will do all the work for you.
- The scholarship will cost a small service fee.
- You have been selected by some foundation or you are a finalist to something you did not remember entering.
- If you delay, you will miss out on a wonderful opportunity unless you act now.
The Federal Trade Commission receives complaints each year and estimates that as many as 200 scholarship search companies may be unscrupulous, according to an article that appeared in The Washington Post.
Check Companies Out
Families are encouraged to thoroughly check out the companies that have made offers to sell you scholarship services. Use these resources available to you as a consumer to make informed decisions:
- Your local Better Business Bureau
- The Federal Trade Commission
- The National Fraud Information Center
- Your state Attorney General's Office
- The U.S. Department of Education Office of the Inspector General
- An Internet search engine; query the company name online and see what you find
Helpful Links
- FinAid!
- Federal Trade Commission
- U.S. Department of Education
- The U.S. Department of Education Office of the Inspector General
It's your money. Part with it wisely and on your terms.