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.
Scam Indicators
- If you must pay money to get money, it might be a scam.
- If it sounds too good to be true, it probably is.
- Spend the time, not the money.
- Never invest more than a postage stamp to get information about scholarships.
- Nobody can guarantee that you’ll win a scholarship.
- Legitimate scholarship foundations do not charge application fees.
- If you’re suspicious of an offer, it’s usually with good reason.
- Avoid the high pressure seminar! At the end of these seminars, parents are matched up with an adviser who proceeds to pressure them into paying enormous fees to help them find the financial aid they need. Sometimes these fees can run into the thousands. It’s similar to the high-pressure tactics used by time-share salespeople. In this scam, though, the salespeople are playing on the fears and desires of parents who just want to provide their child a quality education.
“Remember, do NOT pay for scholarship searches – you can do them yourself for free such as Fastweb at http://www.fastweb.com , or search the many links provided in the book, ‘College Bound-Proven Ways to Plan and Prepare for Getting Into the College of Your Dream’ and ‘Paying for College Without Breaking the Bank: The Ultimate Student, Parent, and Educators Guide to Over 500 Financial Aid and Scholarship Resources.’ It is a great place to start.”
