How to Recognize and Avoid College Scholarship Scams
Special to The Truth
Average college costs have
doubled in the last two decades, and this financial pressure
along with new technologies makes today’s students
particularly vulnerable to financial aid and scholarship
scams.
“Scammers know to take
advantage of those who are stressed,” says Robert C.
Ballard, president and CEO of Scholarship America, the
nation’s largest nonprofit scholarship and education support
organization. “Fortunately, there are some ways you can
avoid getting duped.”
To help you spot scams,
Scholarship America offers the following insights.
Fees and Other Red Flags
Scholarship programs
charging a fee to apply often look legitimate. But look at
the bigger picture: if the provider is awarding $500 in
scholarships and collecting fees from thousands of
applicants, it’s not funding education so much as making
money. Your chances of earning a scholarship are slight if
not impossible -- sham providers often collect fees and
disappear.
Some providers claim to
have a no-strings-attached grant or an incredibly
low-interest loan to offer, as long as you pay a tax or
“redemption” fee in advance. Others offer to match you with
guaranteed scholarships -- if you pay for a premium search
service. Keep in mind, there’s no such thing as a
“guaranteed scholarship.”
Free, comprehensive
scholarship searching and matching services like Fastweb and
Cappex will connect you to legitimate, competitive
scholarships that don’t charge application fees.
Too Good to Be True
Be wary of the
“too-good-to-be-true” scam model: an official-sounding
organization tells you about an incredible opportunity,
offers you a coveted spot at a scholarship seminar, or just
sends you a check with a note of congratulations, using
messaging designed to get your adrenaline pumping and make
you act fast.
Remember, scholarship
providers aren’t in the practice of sending funds out
randomly; it’s likely the check will bounce, or you’ll be
asked to send money back for “processing” or an “accidental”
overpayment. Your safest bet? Tearing up the check and, if
you have time, filing a complaint with the Federal Trade
Commission.
Often unexpected
“opportunities” are attempts to get you to divulge personal
information. Even clicking on links can expose your data to
scammers.
Be cautious: Google the
name of the scholarship or organization. Scams have often
been flagged by the FTC or Better Business Bureau.
Social Scammers
A new scam making the
rounds starts with a random friend request on Facebook,
Instagram or Snapchat. Accept, and your new friend will
start messaging you about a foolproof way to make money for
college: they work for a scholarship provider and have found
a loophole. They just need to enter you as a winner and you
can split the money.
If this was real, it’d be
incredibly unethical. However, in the midst of stress, you
may be tempted -- and that could cost more than money. While
you may be asked to send cash as an advance, most such
scammers are phishing. Give them enough info, and you’ll be
worrying about getting your identity back.
For more scholarship
tools, resources and opportunities, including the annual
Scholarship America Dream Award, please visit
scholarshipamerica.org.
“Scholarship scams seem to
work just enough for people to keep trying it,” says
Ballard. “However, two main rules will help you avoid them:
never pay to apply and if it sounds too good to be true, it
probably is.”
Courtesy StatePoint
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