Beware of the college scholarship scam this upcoming fall semester.
School can be expensive, especially if you or your children attend private schools or are enrolled in college. That’s why scholarship dollars are so enticing.
Scammers are aware of this. It’s why scholarship scams are so popular.
In one type of scholarship scam, the cybercriminals ask for an application fee. That fee might not be large — maybe just $25 or $35 — but if scammers get enough people to pay this fee? The profits can add up. The scammers then either award very few or no scholarships.
Remember, legitimate scholarships don’t require that students pay to apply.
You might also receive an email or text saying that you’ve won a scholarship, even if you don’t remember applying. But before you can collect your thousands of dollars in free money, you must pay a redemption or disbursement fee. Again, this is a scam:
Legitimate scholarships don’t require you to pay any fee to receive your money.
Some scammers offer fake scholarship search services. They’ll send you a text or email saying that they’ll find scholarship offers for you, for a fee. And if you don’t earn one of these scholarships? They’ll refund your money. This is another scam: Once you send your money, these “search companies” will typically disappear.
If they don’t, and you don’t qualify for a scholarship, they might make it incredibly difficult to qualify for a refund.
Helpful Resources Relative to the College Scholarship Scam
• Federal Trade Commission (FTC) – Scholarship Scams: Comprehensive guide on identifying and reporting scholarship scams. FTC Scholarship Scams
• U.S. Department of Education – Financial Aid Toolkit: Offers detailed information on avoiding scams and finding legitimate scholarships. Financial Aid Toolkit
• Better Business Bureau (BBB) – Scam Tracker: Allows users to report and track scholarship scams in their area. BBB Scam Tracker
• College Board – Scholarship Search: Provides a legitimate database for scholarship opportunities without the risk of scams. College Board Scholarship Search
• Fastweb – Scholarship Scams Resource: Resource center for identifying and reporting scholarship scams. Fastweb Scholarship Scams
• FinAid – Scholarship Scams: Offers tips on recognizing and avoiding scholarship scams. FinAid Scholarship Scams
Understanding and avoiding scholarship scams is crucial for students and parents navigating the search for financial aid. By staying informed and utilizing trustworthy resources, you can protect yourself from fraudulent schemes.
Take the time to research and verify the legitimacy of any scholarship offer before providing personal or financial information.
Remember, legitimate scholarships will never ask for payment to apply or receive the award. Stay vigilant, and don’t hesitate to report suspicious activities to the appropriate authorities to help protect others.
By following these guidelines, you can confidently pursue scholarships that will support your educational goals.
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