Scholarship Scams

Scholarship Scams

Graduating from high school is definitely exciting, but it can also be a stressful.  If you choose to move on to a college or university finding money for tuition can add to your anxiety.  With the cost of education sky rocketing, and the competition for scholarships causing a frenzy, we’re sitting ducks for those wishing to take advantage. 

Businesses or consultants are using this opportunity to make a buck by offering to help you find scholarship dollars.  While it’s tempting to look for help, beware that some of these “consultants” may be giving you less than you bargained for.  Students are reporting that they’ve been had by companies that charge them for services they did not receive, paid “advanced fees” for scholarships that never materialized, or have had money stolen from bank accounts after companies have demanded access to “confirm eligibility”. 

The Federal Trade Commission warns that you may be dealing with a scam artist if: 

• The scholarship is “guaranteed or your money back;”
• There is an up-front fee;
• You’re contacted and told that you’re a finalist for a scholarship you haven’t applied for;
• You’re asked for a credit card or bank account number.

If you or your parents would like to hire someone to help you locate financial assistance, the Federal Trade Commission asks that you consider the following:

• Talk to your guidance counselor or college financial aid office before you pay, you may be able to get the same help for free;
• Investigate the organization that you are considering;
• Ask for a list of at least three local families who’ve used the service in the last year and contact them for references;
• Take your time and don’t be rushed; ask a lot of questions and be sure to specifically ask about any fees that may be charged;
• Get it all in writing.

Remember; never give out financial information over the phone.  Check to make sure that the foundation or program offering the scholarship is legitimate before sending money to apply. Finally, don't be afraid to ask questions.  Legitimate scholarships sources are eager to give you all the information you want.

Following these suggestions can save a lot of stress in the long run and can make the time and effort you spend rewarding.  Visit the Federal Trade Commission’s Scholarship page for more information on Scholarship Scams.  If you believe you have been scammed, the best thing to do is contact the National Fraud Information Center by calling their toll-free number: 1-800-876-7060. 

If you would like to learn more about your financial aid options, visit the Washington State Higher Education Coordinating Board.