Scholarship Scams

Over the past several years, the Federal Trade Commission (FTC) has warned consumers about the potential for scholarship scams. Here are some traps to avoid:

Free seminar. It may be legitimate or it may be a hidden sales pitch.

You can't find this information anywhere else. Yes, you can. They don't know about anything that you can't learn on your own.

"You're a finalist!" or "You've won!" a contest you never entered. The caller offers to hold your award funds in return for your credit card or bank account number. Hang up!

First come, first served. This may apply to some legitimate forms of financial aid, but not to scholarships. However, legitimate scholarship sponsors do impose deadlines.

Millions of dollars go unclaimed. False! Every legitimate scholarship sponsor predetermines award amounts and works very hard to select the most qualified recipients.

It's guaranteed! What's usually guaranteed is search "results"—not scholarship money. We can show you how to conduct your own first-rate search.

We'll do the work for you, for a fee. The fee may be nominal and the offer may come from someone sounding official, so make sure you do your research before paying anyone to do a search for you.

Protect Yourself.  Before doing business with a scholarship search company:

1. Call directory assistance to see if the company has a listing or toll-free number
2. Check with your financial aid officer
3. Get any offer in writing
4. Ask for references
5. Call the Better Business Bureau for a reliability rating

To report a potential scam, contact the National Fraud Information Center at 800-876-7060 or the Federal Trade Commission at:
600 Pennsylvania Avenue, NW
Washington, DC 20580

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