Are you asking, “How do I know when a scholarship is really a scam?” There are several ways scams become apparent. Finaid.org discusses several including:
- Money required before getting scholarship but scholarship never materializes
- It may look like a scholarship program, but the scholarship company may be a for-profit agency. In other words, it costs to apply for it, and the money the company raises goes towards paying for the award.
- A low interest loan if offered for a fee prior to approval.
- A letter indicates you have won a scholarship prize but you must pay to receive it.
- Scholarship matching services guarantee scholarships.
- A free financial seminar often includes a sales pitch for insurance, annuity, or other investment products.