Scholarship Scams
By Sherril Steele-Carlin
Unfortunately, even college students have to be aware of scams today, and one of the biggest is the scholarship scam. If you receive an email or letter promising you a scholarship if you pay a fee, sometimes as little as $5, chances are, the offer is a scam.
There are millions of dollars available in scholarship money every year, but you do have to work for it. You need to fill out paperwork, write admissions essays, and search out the best scholarships for your abilities and interests. Chances are, if you think the scholarship opportunity you've received is too good to be true, it probably is. So, despite the fact that you need money for college, don't jump at the first scholarship offer you discover; it could be disastrous for your finances.
Some Common Scams
Many scams look quite legitimate at the beginning, but beware of any service that "guarantees" a scholarship; it is probably a scam. Other common scams include promising a low interest student loan (but you must pay a fee to get the loan), free "financial aid" seminars, and scholarships that never materialize after you have paid an up-front fee. Legitimate scholarships do not charge the student for the funds, so run the other way if you see an offer like this.
Warning Signs
The Federal Trade Commission (FTC) has a Web site regarding scholarship scams. They also list some warning signs that could tip you off that the offer you're so excited about is really just a scam. Some of the warning signs include lines like: "The scholarship is guaranteed or your money back." "You can't get this information anywhere else." " I just need your credit card or bank account number to hold this scholarship." "We'll do all the work." "The scholarship will cost some money." "You've been selected by a 'national foundation' to receive a scholarship" or "You're a finalist" in a contest you never entered. The FTC says these could be clues that the scholarship is not legitimate. You should never give out your credit card number in a situation like this, so beware!
Legitimate Scholarship Services
There are some legitimate scholarship search services that can help you ferret out scholarships you might never know existed, but how do you tell the difference between a scam and a legitimate service? A legitimate service will help you look for a scholarship that fits your needs. They do not offer scholarships.
If a service promises you a scholarship, then chances are it is not legitimate. You may have to pay for the service of a legitimate scholarship service, but if it can help you find the right scholarship, it may be worth it. A legitimate service will keep valid, up-to-date records of scholarships available, and will work with you to find the resources you need. Scams will simply promise you scholarship dollars that don't exist. So, a scholarship service may be a good bet for you if you need scholarship money, and have exhausted your resources, or don't know where to turn.
If you use some common sense in your scholarship search, you can avoid a scam and discover the scholarship that is just right for your college education.
