Scams related to scholarships:
What College-Bound Students
and Parents Need To Know About Scholarships and Scholarship Scams:
From Internet ScamBusters - The #1 Publication on
Internet Fraud
This article will be particularly useful to college-bound students
and their parents, since we focus on scholarships and scholarship
scams. If you know anyone who is applying to colleges this year,
you might want to share this issue of ScamBusters with them.
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What College-Bound Students and Parents Need To Know About Scholarships
and Scholarship Scams
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A college education -- your own or your child's -- is one of the
most expensive undertakings you'll ever commit to. And, for many
people, it would be an impossible dream without the extra help of
scholarships.
Unfortunately, the scholarship field is also riddled with unscrupulous
operators and scams that have cost American consumers over $100
million annually.
Here are some things you need to know so you don't get taken by
scholarship scams:
Tips About Scholarships #1. You don't have to pay any money to get
scholarship money -- not even an application fee. Legitimate scholarship
sources will not need application fees, or 'processing' or insurance
fees. Scammers, of course, will insist that you pay it up front.
(There may be a few exceptions here, but they are rare.)
Note: There are legitimate companies that charge a fee for lists
of potential scholarships you can apply for, or that offer to compare
your profile with a database of scholarship opportunities. These
companies do NOT promise you'll win a scholarship.
Tips About Scholarships #2. You cannot ever be guaranteed to win
a scholarship, and if a scholarship matching company or agency makes
that claim -- run! They don't have any control over the decisions
made by scholarship sponsors.
Some of these companies offer a money-back guarantee, but only if
you apply to every scholarship on the list, which of course is ridiculous
since you won't qualify for many of them.
Tips About Scholarships #3. If the company claims that 'everybody
is eligible,' be skeptical. Every scholarship has some sort of
criteria. Some focus on academic or athletic ability, while others
are for people from some specific location or demographic group.
Tips About Scholarships #4. 'Unclaimed' scholarships are rare. Most
financial aid programs are actually highly competitive and have
too many choices about who to give their money to.
Tips About Scholarships #5. If you are told that the agency will
apply 'on your behalf,' it's probably a scam. There is no way to
avoid writing your own essays, getting your own reference letters,
and submitting your own application.
Tips About Scholarships #6. When you see an ad or brochure with
lots of 'hype' language, be especially wary. There is no need for
legitimate scholarship sources to resort to intense sales pitches.
Tips About Scholarships #7. Bank account or credit card numbers
are never necessary on a scholarship application -- or in follow-up
phone calls, for that matter. If you're told you're a 'finalist'
but a fee is required, it's almost certainly a scam.
Tips About Scholarships #8. Check for a phone number or legitimate
mailing address on the information you're given. Plus, don't be
fooled by a fancy name or a name that sounds like a government agency.
Tips About Scholarships #9. Did you originate the research or the
contact? If not, it's very likely a scam.
If you think you might be in contact with a scholarship scammer,
do your homework. Ask for references, get a local telephone listing,
and ask for lists of scholarships they've awarded.
For more information, see the Federal Trade Commission's pages on
scams about scholarships...
==> http://www.ftc.gov/bcp/conline/edcams/scholarship/psa.htm
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